FIN-FSA Restores Housing Loan Cap to 90%, Keeps Buffer Unchanged
Summary
The Financial Supervisory Authority of Finland (FIN-FSA) has restored the housing loan cap to a baseline level of 90%. The countercyclical capital buffer requirement for banks remains unchanged. This decision impacts lending practices for housing loans.
What changed
The Financial Supervisory Authority of Finland (FIN-FSA) announced on December 20, 2023, that it has restored the housing loan cap to a baseline level of 90% of the collateral value. This decision effectively tightens lending conditions for housing loans by reducing the maximum loan-to-value ratio. Concurrently, the FIN-FSA decided to keep the countercyclical capital buffer (CCyB) requirement for banks unchanged, indicating a continued assessment of systemic risks.
Banks and other lenders supervised by FIN-FSA must ensure their housing loan origination practices comply with the restored 90% cap. While the CCyB remains unchanged, institutions should remain vigilant regarding capital adequacy. This action signals a proactive approach by FIN-FSA to manage potential overheating in the housing market and maintain financial stability. No specific compliance deadline is mentioned, implying immediate effect.
What to do next
- Update housing loan origination policies to reflect the 90% loan-to-value cap.
- Ensure compliance with the restored housing loan cap for all new mortgage lending.
- Monitor FIN-FSA communications for any further adjustments to macroprudential measures.
Source document (simplified)
Publications and press releases
- Press release
20 December 2023
Macroprudential decision: Housing loan cap restored to baseline level of 90% – banks’ countercyclical capital buffer requirement remains unchanged Loan cap countercyclical capital buffer Risk weight floor
- Press release
8 December 2023
FIN-FSA Board appointed for 2024–2026 board FIN-FSA Press release
- Press release
8 December 2023
Financial sector’s capital position as at 30 September 2023: Solvency has remained strong – uncertainty caused by the geopolitical situation underlines the importance of solvency and risk management financial sector capital position FIN-FSA Press release
- Press release
22 November 2023
Marko Myller appointed Head of Banking Supervision at Financial Supervisory Authority FIN-FSA Press release appointment
- Press release
28 September 2023
Macroprudential decision: Housing loan cap and countercyclical capital buffer (CCyB) requirement for banks unchanged – housing loan cap to also cover other lenders transferred under FIN-FSA supervision Loan cap countercyclical capital buffer Lenders
- Press release
12 September 2023
Subdued economic outlook is weakening the financial sector's operating environment – real estate market risks particularly increasing Press release FIN-FSA capital position solvency financial sector
- Press release
7 September 2023
Public warning to Pohjola Insurance Ltd for non-compliance with time limits under Workers’ Compensation Act and provisions concerning system of governance public warning workers’ compensation act pohjola insurance ltd
- Press release
4 September 2023
IMF published a report on anti-money laundering in Nordic and Baltic countries – supervision could be enhanced by increasing cross-border information exchange FIN-FSA Press release imf anti-money laundering
- Press release
28 July 2023
Results of Finnish banks’ stress tests – banks’ resilience good, but a significant weakening of the operating environment would erode buffers FIN-FSA Press release eba ecb banks stress tests
- Press release
6 July 2023
It is important for banks to ensure the availability of personal customer service and reasonably priced basic banking services FIN-FSA Press release banking services basic banking services survey
- Press release
6 July 2023
Early signs of growth in Finnish banks’ credit risks – environment of elevated risks highlights the importance of appropriate impairment staging of borrowers FIN-FSA banking sector credit risks
- Press release
29 June 2023
Macroprudential decision: Housing loan cap and countercyclical capital buffer (CCyB) requirement for banks remain unchanged Loan cap Countercyclical capital buffer O-SII Macroprudential decision
- Press release
13 June 2023
Companies granting consumer credit to be supervised by the Financial Supervisory Authority from 1 July 2023 consumer credit FIN-FSA Press release
- Press release
7 June 2023
FIN-FSA prohibits Ermitage Partners Oy from providing investment services without authorisation Authorisation Decision FIN-FSA Press release
- Press release
7 June 2023
Financial sector's capital position as at 31 March 2023: The Finnish financial sector's capital position has remained good - risks in the operating environment still high Capital position Financial sector FIN-FSA Press release
- Press release
19 April 2023
FIN-FSA published AML supervision strategy - effectiveness of sanctions monitoring to be improved by legislative reform Anti-money laundering FIN-FSA Press release Supervision strategy
- Press release
30 March 2023
Macroprudential decision: Systemic risk buffer set for banks, loan cap remains unchanged Systemic risk buffer Loan cap Countercyclical capital buffer Macroprudential decision
- Press release
15 March 2023
Finnish financial sector’s capital position strong - supervision in 2023 focuses on the risks caused by the uncertain operating environment Capital position Financial sector FIN-FSA Press release Solvency
- Press release
28 February 2023
Administrative fine imposed on Bank of Åland Plc for failures in reporting on derivatives contracts Administrative fine Reporting
- Press release
17 February 2023
Liisa Siika-aho appointed to the Board of the Financial Supervisory Authority Board Board member FIN-FSA Press release
- Press release
27 January 2023
FIN-FSA withdraws Nada express osk’s registration under the Act on Payment Institutions to provide payment service without authorisation FIN-FSA Press release Registration Authorisation
Related changes
Source
Classification
Who this affects
Taxonomy
Browse Categories
Get Banking & Finance alerts
Weekly digest. AI-summarized, no noise.
Free. Unsubscribe anytime.
Get alerts for this source
We'll email you when FIN-FSA Press Releases publishes new changes.