Finland’s financial regulator should be allowed to limit mortgage lending and decide on additional capital buffers for banks to prevent asset price bubbles, according to a report.
The Financial Supervisory Authority should be able to enforce loan-to-value ratios, according to a report by a working group set by the Finance Ministry on Jan. 20. The group is scheduled to give a final assessment of the required regulatory measures by the end of the year.
The Helsinki-based watchdog recommends banks lend at most 90 percent of the property’s value. The regulator lacks the power to enforce the recommendation.
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