RegAlert2016-09-22
Added · Updated
Warning of the European Systemic Risk Board on medium-term vulnerabilities in the residential real estate sector of Denmark
The European Systemic Risk Board identifies medium-term vulnerabilities in Denmark's residential real estate sector as a source of systemic risk to financial stability, driven by robustly increasing property prices in major cities combined with highly indebted households. The warning highlights that approximately one-third of Danish homeowners have total debt exceeding their home values and one-quarter have debt levels over three times their annual pre-tax income, with three-quarters of high-debt households holding variable-rate mortgages vulnerable to interest rate increases. While acknowledging existing Danish measures such as loan-to-value limits and the supervisory diamond, the Board notes these may be insufficient to fully address the risks, particularly given the persistence of high household indebtedness and continued credit growth in urban areas.
Get ESRB alerts — same-day email on every new publication.
Skip to main content
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 - 32017Y0131(04) - 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
Lineage: In force
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
More like this from ESRB
We email you every new ESRB publication the day it's published.