Featured Product

    ESRB Notified on Changes to Mortgage Regulation in Norway Amid Crisis

    October 22, 2020

    ECB and ESRB were notified by the Central Bank of Norway about extension of a measure regarding altered requirements for new residential mortgage loans. As per the notification, the Ministry of Finance has extended the temporary changes in the mortgage regulation in response to the COVID-19 pandemic. The Ministry of Finance decided to continue the increased flexibility quotas in the mortgage regulation until the third quarter of 2020. The intended effect of the measure is to alleviate the financial stress mortgage holders are facing in the current crisis.

    The mortgage regulation allows a certain amount of a lender’s approved loans to deviate from the requirements in the regulation. This quarterly quota is 10% of the volume of a lender’s approved new mortgages outside Oslo and 8% for new mortgages in Oslo. In April, the Ministry of Finance announced temporary measures to increase both the quotas to 20% for the period of April 01, 2020 to June 30, 2020. Central Bank of Norway notified ECB and ESRB that the Ministry of Finance decided to extend the temporary increase in the quotas until September 30, 2020.

    The main purpose of the change in the regulation is to strengthen the ability of banks to help their customers through the crisis. The outlook for the Norwegian economy indicates that many mortgage customers will have an increased need for flexibility. This may include self-employed who have provided housing as collateral for loans and are now in need of capital. If banks want to provide new mortgage customers with the possibility to delay the payment of installments for a certain period, they must use the flexibility ratio. Likewise, they must use the flexibility ratio if they want to provide the same opportunity to customers who refinance an existing mortgage.

     

    Related Links

    Keywords: Europe, Norway, Banking, COVID-19, Macro-Prudential Measures, Central Bank of Norway, Credit Risk, RRE, Residential Mortgage Lending, ECB, ESRB

    Featured Experts
    Related Articles
    News

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News
    News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.

    January 01, 2023 WebPage Regulatory News
    News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.

    December 30, 2022 WebPage Regulatory News
    News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.

    December 29, 2022 WebPage Regulatory News
    News

    CBIRC Revises Measures on Corporate Governance Supervision

    The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.

    December 29, 2022 WebPage Regulatory News
    News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News
    News

    EBA Updates Address Basel and NPL Requirements for Banks

    The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.

    December 22, 2022 WebPage Regulatory News
    News

    ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite

    The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.

    December 22, 2022 WebPage Regulatory News
    News

    FCA Sets up ESG Committee, Imposes Penalties, and Issues Other Updates

    The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.

    December 20, 2022 WebPage Regulatory News
    News

    FSB Reports Assess NBFI Sector and Progress on LIBOR Transition

    The Financial Stability Board (FSB) published a report that assesses progress on the transition from the Interbank Offered Rates, or IBORs, to overnight risk-free rates as well as a report that assesses global trends in the non-bank financial intermediation (NBFI) sector.

    December 20, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8697