Debt must be measured against repayment capacity The current loan-to-value cap on housing loans urgently needs to be accompanied by a new, more comprehensive cap on debt. This would take into account all a loan applicant’s debt relative to their income. Share Email Twitter Facebook Linkedin Google+
Capping debt-to-income ratios complementary to housing loan cap The indebtedness of Finnish households relative to income has grown considerably since the turn of the millennium. A proportion of new residential mortgage holders have a heavy debt burden relative to their income. Share Email Twitter Facebook Linkedin Google+
Rising household debt levels must be addressed in time Finnish households have a worrying level of debt. Advance measures should be taken to prevent the accumulation of excessive debt. Share Email Twitter Facebook Linkedin Google+
EU macroprudential policy lays emphasis on residential mortgage loans and the banking sector’s structural risks Regulatory reforms and macroprudential measures have improved the risk resilience of the bank-centred EU financial system. Work has also begun on targeting stability risks building up beyond the banking system. Share Email Twitter Facebook Linkedin Google+