The Swiss Financial Market Supervisory Authority (Finma) fears that financial centre risk is becoming increasingly tense. Developments in the mortgage market are particularly worrying. +Get the most important news from Switzerland in your inbox "Prices have continued to rise and the risk of a correction is correspondingly high," warned Finma director Stefan Walter in an interview with Blick. + Houses for sale in Switzerland? Yes, but you can’t afford it Above all, Walter criticised the fact that many banks were making excessive use of their internal affordability criteria. "At many institutions, the exceptions are between 25% and 40% of the mortgage lending." This is neither in the interests of the bank nor its customers. + Swiss home mortgage system explained In its annual risk report at the beginning of the week, Finma also pointed out that the lending criteria were too lax. When asked why nothing was changing, Walter pointed to the great competitive pressure: growth in a ...
