Regulatory Alerts2026-03-03
AFM | DNB Monitor of Loan Standards and Financial Stability 2026
The AFM and DNB issued their first annual monitor on mortgage loan standards and financial stability at the request of the Dutch ministers of Finance and Housing, aiming to integrate financial stability more prominently into loan standard determinations. The report finds that while household vulnerabilities have decreased since 2013, risks remain elevated due to high mortgage debt, rising Loan-to-Value and Loan-to-Income ratios for new loans, and a tight housing market that encourages risky borrowing behavior. The regulators conclude that prudent loan standards are essential to mitigate systemic risks, warning that loosening standards would exacerbate price pressures and instability, while tightening them could further reduce housing accessibility in the current constrained market.