Bank of Portugal exempts Portuguese banks from reciprocating Norway’s property risk-weight floors

The Bank of Portugal decided on 15 December 2025 to exempt Portuguese credit institutions from reciprocating the macroprudential measures applied by the Norwegian macroprudential authority (Finansdepartementet) under Article 458 of Regulation (EU) No 575/2013, citing the measures’ non-materiality for Portuguese institutions. Norway’s measures set floors for average risk weights on exposures collateralised by immovable property located in Norway: 20% for residential property until 30 June 2025, increasing to 25% from 1 July 2025, and 35% for commercial property for two years from 31 December 2024. The floors apply only to institutions authorised in Norway using the internal ratings-based approach. The exemption was adopted under the de minimis principle in European Systemic Risk Board Recommendation ESRB/2015/2, as amended, which allows exemptions for institutions with non-material exposure to the identified systemic risk. The exemption remains in force for as long as the Norwegian measure is in place and while each affected Portuguese institution’s exposures remain below the materiality threshold set by the macroprudential authority. The Bank of Portugal also published a document explaining the Norwegian authority’s rationale for the measure and the basis for granting the reciprocity exemption.