Law Establishing The Mechanisms Of A Macro-Prudential Policy And Setting Out The Specific Tasks Assigned To The National Bank Of Belgium In The Context Of Its Mission To Contribute To The Stability Of The Financial System (1)

Original Language Title: Loi établissant les mécanismes d'une politique macroprudentielle et précisant les missions spécifiques dévolues à la Banque nationale de Belgique dans le cadre de sa mission visant à contribuer à la stabilité du système financier (1)

Read the untranslated law here: http://www.ejustice.just.fgov.be/cgi/article_body.pl?numac=2014003196&caller=list&article_lang=F&row_id=700&numero=780&pub_date=2014-05-07&dt=LOI&language=fr&fr=f&choix1=ET&choix2=ET&fromtab=+moftxt&trier=publication&sql=dt+=+'LOI'&tri=pd+AS+RANK+

Posted the: 2014-05-07 Numac: 2014003196 FEDERAL finance PUBLIC SERVICE April 25, 2014. -Law establishing the mechanisms of a macro-prudential policy and setting out the specific tasks assigned to the National Bank of Belgium in the context of its mission to contribute to the stability of the financial system (1) PHILIPPE, King of the Belgians, to all, present and to come, hi.
The Chambers have adopted and we endorse the following: Chapter 1. -Provisions introductory Article 1. This Act regulates a matter referred to in article 78 of the Constitution.
S. 2. this Act is designed to implement the recommendation of the European Committee of systemic risk Board (ESRB/2011/3) of 22 December 2011 on the prudential's national authorities mandate.
CHAPTER 2. -Amendments to the law of 22 February 1998 establishing the Organic Statute of the National Bank of Belgium art.
3. article 12 of the law of 22 February 1998 establishing the Organic Statute of the National Bank of Belgium, is replaced by the following: 'article 12 § 1. The Bank contributes to the stability of the financial system. To this end, and in accordance with the provisions laid down in chapter IV/3, it ensures the detection, evaluation and monitoring of the various factors and developments likely to affect the stability of the financial system, by means of recommendations, it determines the actions that the various authorities concerned should be implemented for the purpose of contributing to the stability of the financial system as a whole including by strengthening the robustness of the financial system, by preventing the occurrence of systemic risks and limiting the effects of possible disruptions, and it adopts measures within its competence with that purpose.
The Bank is, for all decisions and operations taken in the context of its contribution to the stability of the financial system, of the same degree of independence as one dedicated by article 130 of the Treaty on the functioning of the European Union.
§ 2. The Bank may also be responsible for the collection of statistical information and international cooperation related to any mission referred to in article 10. "."
S. 4. article 28 of the Act is replaced by the following: 'article 28. the Governor transmits to the speaker of the House of representatives the annual report referred to in article 284, paragraph 3 of the Treaty on the functioning of the European Union, as well as an annual report on the missions of the Bank regarding prudential supervision of financial institutions and its tasks relating to the contribution to the stability of the financial system referred to chapter IV/3. The Governor may be heard by the competent committees of the House of representatives, at the request of these commissions or on its own initiative.
The communications made under this section may however, because of their content or the circumstances, pose a risk to the stability of the financial system. "."
S. 5. in the same Act, it is inserted a chapter IV/3, entitled "Missions of the Bank in the context of the contribution to the stability of the financial system".
S. 6. in chapter IV/3, inserted by article 5, it is inserted a Section 1 entitled "General provisions".
S. 7. in the 1st section, inserted by article 6 article be inserted a 36/32 as follows: "article 36/32. § 1. The provisions of this chapter specify certain tasks of the Bank and the legal instruments y thereto, in the context of the mission's contribution to stability of the financial system referred to in article 12, § 1.
§ 2. For the purposes of this chapter, shall mean: 1 ° "financial system stability": a situation in which the likelihood of discontinuity or disruption of the functioning of the financial system is weak or, if such disruptions occur, their impact on the economy would be limited.
2 ° "national authorities": the Belgian authorities, that they fall within the federal level or the Regions, likely, taking into account their respective competences, to implement the recommendations of the Bank issued pursuant to this chapter;
3 ° "MSU regulation": Regulation (EU) No. 1024/2013 October 15, 2013 Council entrusting the European Central Bank specific tasks relating to the prudential supervision of credit institutions policies;
4 ° "European supervisory authorities": the European banking authority established by Regulation (EU) no 1093/2010, the authority of European insurance and occupational pensions established by the Regulation (EU) no 1094/2010 and the European financial markets authority established by Regulation (EU) No 1095 / 2010 '. "
S.
8. in chapter IV/3, inserted by article 5, it is inserted a Section 2 entitled: "Detection and monitoring of the factors likely to affect the stability of the financial system".
S. 9. in section 2, inserted by article 8 article be inserted a 36/33 as follows: "article
36/33. § 1. The Bank is responsible for the detection, evaluation and monitoring of the various factors and developments likely to affect the stability of the financial system, especially in terms of an interference with the robustness of the financial system or a buildup of systemic risks.
In this context, the Bank has access to all useful information to this mission.
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2. In particular, for the purposes referred to in paragraph 1, the Bank is authorized to: 1 ° use the information available to it under its other legal tasks, as they arise or are specified by or under other laws, including those governing the status and control of financial institutions referred to in article 36/2 or control over consolidated these institutions;
2 ° use the prerogatives regarding access to the information available to it under its other legal tasks, as they arise or are specified by or under other laws, including those governing the status and control of financial institutions referred to in article 36/2 or control over consolidated these institutions;
3 ° require relevant information for the exercise of this mission to any private entity not subject to the status of control within its competence, or, where appropriate, through the authorities responsible for these entities.
§ 3. Notwithstanding the regime of professional secrecy to which they are applicable subject, the entities of the public sector, regardless of their degree of autonomy, are collaborating with the Bank so that it has all the information useful for the performance of its task referred to in this article. For this purpose, these information shall be communicated to the Bank initiative or on request.
§ 4. For the purposes of this article, the Bank may also conclude collaboration agreements with the Regions, the European Central Bank, the Committee of the European systemic risk Board (ESRB), the authorities European supervisory and foreign authorities in the area of macro-prudential oversight and communicate confidential those institutions. '. "
S. 10. in chapter IV/3, inserted by article 5, it is inserted a Section 3 entitled "Adoption of the legal instruments with a view to contributing to the stability of the financial system".
S. 11. in section 3, inserted by article 10 article be inserted a 36/34 as follows: "article 36/34. § 1. Without prejudice to directives and regulations Europeans, notably as regards the prerogatives vested in the Central Bank European banking supervision including the area of macro-prudential, the Bank may, for purposes of policy macro-prudential to contribute to the stability of the financial system, exercise all the prerogatives, including regulatory, laid down in or under this Act or legislation governing the status and control of financial institutions referred to in article
36/2 or the control of these institutions on a consolidated basis.
In addition to the powers referred to in paragraph 1, in order to contribute to the stability of the financial system, without prejudice to the powers conferred on the European Central Bank, the Bank may use the following instruments for financial institutions subject to its control: 1 ° the imposition of capital or additional liquidity requirements to, or more stringent that those laid down by or pursuant to laws prudential and this for all institutions or by category of establishments under its control;
(2) the imposition, in the context of capital requirements, specific requirements depending on the exhibitions or according to the value of the received collateral, or according to the sectors of activity or geographic area which are debtors, which are complementary to, or more stringent that those laid down by or pursuant to laws prudential and this, for all institutions or by category of establishments under its control;
3 ° the power to impose quantitative limits for exposures to a single counterparty or a group of related counterparties, or on a sector of activity or geographic area, that are complementary to, or more stringent that those laid down by or pursuant to prudential and this legislation for all institutions or by category of establishments under its control;
4 ° the imposition of limits on the total level of the activities of enterprises under its control by report

their own funds (leverage ratio), that are complementary to, or more stringent that those laid down by or pursuant to prudential and this legislation for all institutions or by category of establishments under its control;
5 ° the imposition of conditions for evaluation of security taken as collateral for credits provided for the verification of compliance with the solvency requirements laid down by or pursuant to the prudential legislation;
(6) the imposition of a total or partial of distributable profits reserve development;
7 ° the imposition of asset pricing rules different from those laid down by the accounting regulations for the purpose of the requirements laid down by or under the prudential legislation;
8 ° the power to impose publication of information, and to set the modalities, which are complementary to those laid down by or pursuant to prudential and this legislation for all institutions or by category of establishments under its control;
9 ° the power to communicate about the measures adopted under this section and their objectives, the manner it shall determine.
§ 2. Where the measures adopted pursuant to subsection 1, paragraph (2) are of general importance and therefore of a regulatory nature, their adoption requires respect for Royal approval provided for in article 12A, § 2, paragraph 3.
§ 3. For the purposes of this article, the Bank takes into account the recommendations issued by the European systemic risk Board (ESRB) as well as positions or decisions of the European Commission and the European Central Bank, in particular, when the latter imposed the additional capital requirements credit institutions or other measures aimed at reducing systemic risk.
Before implementing the measures referred to in paragraph 1, the Bank informed the Committee European systemic risk Board (ESRB), the Central Bank European as well as, where applicable, the European supervisory authorities and the European Commission concrete measures which it intends to implement. Except duly justified emergency and except specific deadlines foreseen by Community law regarding the implementation of legal instruments, the Bank waits, for a period not exceeding one month, the reaction of the above-mentioned institutions before implementing concrete measures envisaged.
The Bank is, moreover, bound to take into account the objections by the European Central Bank or, where appropriate, to other European authorities when it comes to the credit institutions or groups to which they belong in additional equity requirements or other measures to reduce systemic risks. "."
S. 12. in chapter IV/3, inserted by article 5, it is inserted a Section 4, entitled "Recommendations for contributing to the stability of the financial system".
S. 13. in section 4, inserted by article 12 article be inserted a 36/35 as follows: "article 36/35. The Bank determines, by means of recommendations, measures that the relevant national authorities, the Central Bank European or other authorities European, each as what is concerned, should adopt and implement for the purpose of contributing to the stability of the whole financial system, including by strengthening the robustness of the financial system, by preventing the occurrence of systemic risks and minimizing the effects of possible disruptions.
The Bank monitors its recommendations ensuring their effective implementation, in particular by the national authorities concerned and in assessing the effects of measures taken for this purpose.
The Bank shall, in addition, the consistency of this mission with those conferred under Community law including the European Central Bank regarding prudential supervision of the credit institutions, including in the domain macro-prudential. "."
S.
14. in the same section 4, it is inserted an article 36/36 as follows: "article 36/36.
The recommendations of the Bank were for the purpose of contributing to the stability of the financial system. They take into account the recommendations adopted by the Committee of the European systemic risk Board (ESRB) as well as positions or decisions of European institutions including the European Commission and European Central Bank. The recommendations are duly reasoned and communicated confidentially to the national authorities to implement as well as the European systemic risk Board (ESRB) Committee and the European Central Bank.
Where it considers it necessary, the Bank may also submit proposals to the European Central Bank or other European authorities therefore that the instruments to be implemented within the purview thereof.
The Bank follows within the periods prescribed by Community law, the notifications made by the European Central Bank in accordance with article 5, paragraph 4 of regulation MSU, informing him of his intention to raise the requirements applicable to credit institutions own funds or adopt other measures to reduce systemic risk. Any objection against such a measure shall be duly substantiated against the European Central Bank. "."
S. 15. in the same section 4, inserted a section 36/37 as follows: "article 36/37. Notwithstanding the application of articles 35 and 36/36 and without prejudice to paragraph 2, the Bank publishes its recommendations. She decided the terms of this publication.
The communications made under this section may, because of their content or circumstances, pose a risk to the stability of the financial system. "."
S. 16. in the same section 4, inserted a section 36/38 as follows: "article 36/38. § 1. In the implementation of the recommendations of the Bank which fall within their field of competence, national authorities can use all instruments, powers of decision, regulatory powers and prerogatives provided for by or under the laws or decrees that govern their status and their missions.
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2. In particular, the King may, by royal decree deliberated in the Council of Ministers and on the advice of the Bank, impose on providers of appropriations of the coefficients: 1 ° of coverage providing a percentage of the value of a security beyond which a credit may be granted (loan to value ratio);
(2) maximum total debt compared to the revenue available in the head of the borrower.
The opinion of the Bank is not required when the measure adopted by the King in accordance with this paragraph is, in all respects, comply with a recommendation of the Bank issued in implementation of article 36/35. "."
S. 17. in the same section 4, inserted a rule 36/39 as follows: "article 36/39. Without prejudice to specific procedures laid down by Community law, the national authorities that fall within the federal State shall inform the Bank of the concrete measures they intend to implement to meet the recommendations of the. The Bank shall inform, without delay, the European systemic risk Board (ESRB), the European Central Bank as well as, where appropriate, European authorities of supervision and Commission European. Except duly justified emergency and except special periods laid down by Community law on the implementation of legal instruments, the authorities concerned are waiting, for a period not exceeding one month from the date of communication to the Bank, the reaction of the aforementioned before the concrete implementation institutions envisaged measures. "."
S. 18. in the same section 4, inserted a section 36/40 as follows: "article 36/40. In case the concerned authorities that fall within the federal State do not conform to the recommendations issued by the Bank, they provide to the Bank, by way of reasoned opinion, the reasons which lead them to deviate from its recommendations. This reasoned opinion accompanies the communication referred to in article 36/39. "."
S. 19. in the same section 4, inserted a section 36/41 as follows: "article 36/41. If the national authorities that fall within the federal State still fails to adopt measures to implement the recommendations issued by the Bank pursuant to this chapter within the possibly fixed period or in the absence period, within two months of their notification or find themselves in a situation referred to in article 36/40, the King is empowered , by royal decree deliberated in the Council of Ministers, to take the measures referred to in article 36/38, § 1. In this case, the procedure laid down in article 36/39 shall apply. "."
S. 20. in chapter IV/3, inserted by article 5, it is inserted a Section 5 entitled "Purposes, special provisions and sanctions".
S. 21. in section 5, inserted by article 20 article be inserted a 36/42 as follows: "article
36/42. In the context of the adoption of the acts and measures taken pursuant to this chapter, the Bank and national authorities shall contribute to the stability of the financial system as a whole, including by strengthening the robustness of the financial system and preventing the occurrence of systemic risks. "."
S.
22. in the same section 5, it is inserted a section 36/43 as follows: "article 36/43.
The advertising administration Act of 11 April 1994 is not applicable to the Bank through its mission referred to this chapter or the national authorities within the framework of the

implementation of the recommendations of the Bank in accordance with this chapter. "."
S. 23. in the same section 5, it is inserted a section 36/44 as follows: "article 36/44. The Bank and national authorities as well as their bodies and their respective staff members will incur no liability for their acts or behaviors in the context of the measures and acts adopted pursuant to this chapter, except in case of fraud or gross negligence. "."
S. 24. in the same section 5, it is inserted a section 36/46 as follows: "article 36/46. Is punishable by a fine of 50 to 10,000 euros, the person: 1 ° that being required to provide information available or easily accessible, under this chapter or the measures taken for its enforcement, does not the obligations imposed;
2 ° as opposed to the research and findings conducted by the Bank under section 36/33;
3 ° which fails to comply with the measures imposed pursuant to this chapter.
The provisions of book I of the penal Code, without exception of Chapter VII and article 85, shall apply to the offences punishable under this chapter. "."
Promulgate this Act, order that it self under the seal of the State and published by le Moniteur.
Given to Brussels, April 25, 2014.
PHILIPPE by the King: Deputy Prime Minister and Minister of the Interior and of equality of opportunity, Ms. J. MILQUET. the Minister of finance, K. GARG sealed with the seal of the State: the Minister of Justice, Ms. A. TURTELBOOM _ Note House of representatives (www.lachambre.be) Documents: complete record 53-3414: April 3, 2014.
Senate (www.senate.be) Document: 5-2844 project not mentioned by the Senate: April 10, 2014.