In the European Union, the national authorities responsible for financial stability, such as the Banco de Portugal, may impose the same, or equivalent, measures as those set by the competent or relevant authorities of another jurisdiction regarding exposures to risk in their Member State. The concept of ‘voluntary reciprocity’ was introduced by Recommendation ESRB/2015/2.

This Recommendation of the European Systemic Risk Board also introduces the de minimis principle, according to which financial institutions with negligible exposures to the risk that the macroprudential measure intends to target can opt out of voluntary reciprocity. In that case, national authorities should establish a threshold below which the de minimis principle applies. As a starting point, the European Systemic Risk Board recommends 1% of the total risk exposure amount.

Measures in force (adoption of voluntary reciprocity)

Measures in force (non-adoption of voluntary reciprocity)