Regulatory Alerts2026-04-14
FSC: 'Financial Stability Outlook on Orange Code'
The Dutch Financial Stability Committee (FSC) issued this report warning that geopolitical tensions and supply shocks are elevating inflation and growth risks, while maintaining that prudent mortgage lending standards must remain unchanged to safeguard financial stability. The committee highlights emerging credit and liquidity vulnerabilities in the rapidly expanding private credit sector, noting that elevated equity valuations and tightening financial conditions require continuous monitoring and stress testing. It concludes that easing lending criteria would exacerbate housing affordability issues and systemic risks, instead advocating for a broader policy mix focused on increasing housing supply and maintaining robust capital buffers across banks, insurers, and pension funds.