Voluntary reciprocity regime for macroprudential policies of European Economic Area countries
To ensure consistent and effective cross-border macroprudential policy in line with the Credit Institutions Law Article 35.6 (1), Article 35.21 (1), Article 50 (4) and Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 Article 124 Point 5 and Article 164 Point 7, on October 19, 2016, the Financial and Capital Market Commission (the FCMC) adopted a decision “On general approach towards the voluntary reciprocation of macroprudential measures”.
The adopted general approach is the following:
1.1. Member States have notified that reciprocation is required for such measures;
1.2. There is no substantial reason for not doing so, e.g., if the impact analysis shows that the reciprocated measure would not potentially reduce effectiveness of the measures implemented in Latvia.
The list of currently active measures recommended for reciprocation is available at the European Systemic Risk Board homepage: https://www.esrb.europa.eu/national_policy/reciprocation/html/index.en.html
The FCMC Council’s decisions for the reciprocation of measures: