Financial stability assessment : Debt-to-income cap and maturity limits necessary to curb financial stability risks

Show full item record

Title: Financial stability assessment : Debt-to-income cap and maturity limits necessary to curb financial stability risks
Organization: Bank of Finland
Series: Bank of Finland. Bulletin
Series volume: 95
Series number: 1/2021
Year of publication: 2021
Publication date: 4.5.2021
Pages: 6-24
Subject (yso): pankit; riskit; yritykset; kotitaloudet (organisaatiot); asuntolainat; sääntely; velkaantuminen; rahoitus; rahoitusjärjestelmät; asuntomarkkinat
Keywords: Suomi; rahoitusvakaus; velkakatto; asuntoluotonanto; COVID-19; korona; koronapandemia
Other keywords: banks; debt-to-income cap; financial stability; indebtedness; mortgage lending
Abstract: The vulnerabilities related to housing finance have increased in Finland during the COVID-19 pandemic. Long housing loans are being taken out more than ever and a larger proportion of new mortgages are being granted to borrowers whose total debts will then be very high relative to income. The persistent upward trend in household indebtedness will undermine the economy’s ability to withstand future economic crises. A debt-to-income cap and a limit on the maturity of housing loans should be introduced without delay to stop the loosening of credit standards.
Note: The accessible version: https://www.bofbulletin.fi/en/2021/1/debt-to-income-cap-and-maturity-limits-necessary-to-curb-financial-stability-risks/
Link: http://www.bofbulletin.fi/
Rights: https://helda.helsinki.fi/bof/copyright


Files in this item

Total number of downloads: Loading...

Files Size Format View
Bulletin_1_2021_assessment.pdf 370.9Kb PDF View/Open

This item appears in the following Collection(s)

Show full item record