Belgium: Financial System Stability Assessment-Technical Note-Banking, Insurance, and Financial Conglomerate Supervision

IMF Staff Country Reports, March 8, 2018

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Canonical URL: Belgium: Financial System Stability Assessment-Technical Note-Banking, Insurance, and Financial Conglomerate Supervision

The Technical Note analyzes the key aspects of the regulatory and supervisory regime of banks, insurance companies and financial conglomerates (FCs) in Belgium.
The regulatory framework for Belgian financial institutions has been strengthened substantially since the 2013 Financial Sector Assessment Program.
Notable reforms and transpositions:
- New national banking and insurance laws have been issued.
- The Bank Recovery and Resolution Directive has been transposed.
- Amendments to the Financial Conglomerate Directive have been transposed.
- Solvency II has been implemented.
- The National Bank of Belgium has been designated as the macroprudential authority.
Impacts of reforms:
- The regulatory framework has been improved significantly and broadened in scope to better address the challenges posed by FCs.
- Financial sector supervision has been upgraded markedly.

Banking supervision and capital adequacy: emphasis on strengthened national banking law and alignment with international/regional directives.
Insurance supervision and solvency: implementation of Solvency II as a core reform.
Financial conglomerate oversight: transposition of amendments to the Financial Conglomerate Directive and broadened supervisory scope for FCs.
Macroprudential governance: designation of the National Bank of Belgium as macroprudential authority.