27.03.2013 - Swiss property boom hasn't led to imprudent lending - Finma
Switzerland's market supervisory authority Finma said Tuesday it had found no evidence of "any large-scale imprudent" mortgage lending by banks despite the Alpine country's buoyant property market. The recent price gains in the Swiss real estate market--driven largely by historically low interest rates and the influx of cash-rich migrants--has shored up the country's economy, but at the same time has spurred demand for residential property, Finma Chief Executive Patrick Raaflaub said at a briefing Tuesday. "The Swiss mortgage market was, and still is, one of the main issues we have addressed in the recent past, and our stress tests analyze on an on-going basis whether mortgage loans are backed by enough equity," Mr. Raaflaub said...............................................Full Article: Source
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