Cover -- CONTENTS -- GLOSSARY -- INTRODUCTION AND BACKGROUND -- A. Macroeconomic and Financial Sector Developments -- B. Household and Corporate Sector Developments -- C. Implementation of 2006 FSAP Recommendations -- SOUNDNESS OF THE FINANCIAL SYSTEM AND POTENTIAL RISKS -- A. Financial Crisis and Policy Response -- B. Vulnerabilities Analysis -- C. Bank Stress Testing -- D. Insurance Stress Testing -- FINANCIAL STABILITY FRAMEWORK -- A. Banking Supervision -- B. Insurance Supervision -- C. Conglomerates Supervision -- D. Securities Markets and Regulation -- E. Soundness and Oversight of Market Infrastructures -- F. Crisis Management and Safety Nets -- G. Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) -- BASEL CORE PRINCIPLES FOR EFFECTIVE BANKING SUPERVISION -- A. Background -- B. NBB Approach to Supervision -- C. Assessment Challenges -- D. Preconditions for Effective Supervision -- E. Main Findings -- F. Authorities' Response to the Assessment -- INTERNATIONAL ASSOCIATION OF INSURANCE SUPERVISORS (IAIS) INSURANCE CORE PRINCIPLES -- A. Background -- B. Preconditions for Effective Securities Regulation -- C. Main Findings -- D. Authorities' Response to the Assessment -- BOXES -- 1. Outward Spillovers from Belgium Financial Sector -- 2. Network Analysis of Spillover Risk for the Belgian Banking System -- 3. The Impact of the Banking Union on Belgium -- FIGURES -- 1. Structural Features of the Financial Sector -- 2. Economic Developments -- 3. Nonfinancial Sector Developments -- 4. Financial Market Indicators -- 5. Banking Sector Developments -- 6. International Exposures of Belgian Banks, 2007-12 -- 7. Insurance Financial Soundness Indicators -- 8. Macroeconomic Assumptions Under Different Stress Test Scenarios -- 9. Solvency Stress Test Results-CET1 Hurdle Rate -- 10. Liquidity Indicators and Stress Test Results.

TABLES -- 1. Belgium: FSAP Update-High Priority Recommendations -- 2. Baseline-Selected Economic Indicators, 2009-17 -- 3. Structure of the Financial Sector -- 4. Financial Sector State Support (2012) -- 5. Financial Soundness Indicators for the Banking Sector -- APPENDICES -- I. Belgian Covered Bonds and Financial Stability Considerations -- II. Main Recommendations of the 2006 FSAP -- III. Crisis Intervention and Restructuring Measures -- IV. Risk Assessment Matrix -- V. Overview of Stress Tests for Banks -- ANNEX -- I. Report on the Observance of Standards and Codes-Summary Assessments.