Warning of the European Systemic Risk Board on medium-term vulnerabilities in the residential real estate sector in Iceland

The European Systemic Risk Board identifies medium-term vulnerabilities in Iceland's residential real estate sector as a source of systemic risk to financial stability, primarily driven by high household indebtedness and potential house price overvaluation. The Board notes that current macroprudential measures are only partially sufficient to mitigate these risks, particularly regarding highly leveraged households. It recommends that Icelandic authorities consider implementing explicit guidelines on income-based borrower measures, such as debt-to-income limits, to prevent excessive indebtedness and ensure the resilience of both borrowers and credit institutions.

Get ESRB alerts — same-day email on every new publication.

EUR-Lex

Access to European Union law

This document is an excerpt from the EUR-Lex website

You are here

EUROPA

EUR-Lex home

EUR-Lex - 32019Y1030(10) - EN

Help

Quick search

Use quotation marks to search for an "exact phrase". Append an asterisk ( * ) to a search term to find variations of it (transp * , 32019R * ). Use a question mark ( ? ) instead of a single character in your search term to find variations of it (ca ? e finds case, cane, care).

Search tips

Need more search options? Use the

Read the rest free, and get an email when ESRB publishes again

Email me when ESRB publishes something newOne email per publication, same day. Sign in below to keep reading.

Lineage: In force

amendssupersedesissued underrefers toproposed or not in RegAlertarrows run from the older text to the one that changes it

Source: European Systemic Risk Board — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works