Regulatory Alerts2016-09-22
Added · Updated
Warning of the European Systemic Risk Board on medium-term vulnerabilities in the residential real estate sector of Finland
The European Systemic Risk Board identifies medium-term vulnerabilities in Finland's residential real estate sector as a source of systemic risk to financial stability, primarily driven by high and increasing household indebtedness. The warning highlights that variable interest rate loans expose households to interest rate risk and notes that existing policy measures may be insufficient to fully address these risks. The Board further warns of potential cross-border spill-over effects to other countries in the Nordic-Baltic region should these risks materialize.
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