Regulatory Alerts2019-06-27
Added · Updated
Warning of the European Systemic Risk Board on medium-term vulnerabilities in the residential real estate sector in Norway
The European Systemic Risk Board identifies medium-term vulnerabilities in Norway'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 assesses that while current macroprudential measures are appropriate, they are only partially sufficient to mitigate these risks, and recommends complementing them with broader policy actions to address factors promoting household indebtedness. If vulnerabilities persist or worsen, existing macroprudential measures could be tightened or new ones activated.
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