Regulatory Alerts2016-09-22
Added · Updated
Warning of the European Systemic Risk Board on medium-term vulnerabilities in the residential real estate sector of Belgium
The European Systemic Risk Board identifies medium-term vulnerabilities in Belgium's residential real estate sector as a source of systemic risk to financial stability. These vulnerabilities stem from a rapid increase in overall household indebtedness, significant groups of highly indebted households, and a substantial rise in residential real estate prices. The Board notes that while existing measures by Belgian authorities address bank resilience, they may be insufficient to fully mitigate risks associated with highly indebted households and continued price increases.
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