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NOK179.35 -0.2  -0.1%

Last Trade - 12/05/21

Sector
Financials
Size
Large Cap
Market Cap £23.98bn
Enterprise Value £55.88bn
Revenue £5.01bn
Position in Universe 31st / 1832

Norway's bank regulator proposes tighter mortgage rules

Tue 17th March, 2015 7:11am
OSLO, March 17 (Reuters) - Norway's bank regulator proposed 
tighter mortgage rules on Tuesday, arguing that there was a risk 
that rapid house price and credit growth could continue, even as 
the economy slows after a big oil price fall. 
    The regulator said the maximum loan to value ratio will 
remain 85 percent but it will close loopholes that allowed banks 
to go higher and banks' room to deviate from the 85 percent rule 
will be sharply cut.  
    The regulator also said it would require more strenuous 
stress tests for household borrowers, looking at whether they 
can manage a 6 percentage point rise in interest rates versus a 
previous 5 percent. 
    It also said it would introduce an annual instalment payment 
of at least 2.5 percent from the first year on all mortgages 
with a loan-to-value ratio above 65 percent. 
 
 (Reporting by Balazs Koranyi and Terje Solsvik) 
 ((Balazs.Koranyi@thomsonreuters.com; +47 2331 6596; Reuters 
Messaging: balazs.koranyi.thomsonreuters.com@reuters.net)) 
 
Keywords: NORWAY LENDING/
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