Regulatory Alerts2022-12-19
Practice for Consumer Loans
The Norwegian Financial Supervisory Authority issued circular 6/2022 to provide guidance on the amended regulations for financial institutions' lending practices to consumers, which entered into force on January 1, 2023. The document mandates that institutions calculate repayment capacity using a stress test of at least 7% interest rates and requires annual amortization for loans exceeding 60% of property value. It further details specific reporting obligations for deviations in mortgage, consumer, and secured loans, including strict rules on refinancing and flexibility quotas.
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