Accessibility/Mobile Features
Skip Navigation
Skip to Content
Editorial News
Business
Classified Sites

The Canadian Press - ONLINE EDITION

Switzerland doubles amount of capital banks required to hold against home mortgage risks

GENEVA - The Swiss government is doubling the amount of capital banks must hold against residential mortgage risks as it tries to prevent the country's property market from overheating.

Switzerland's governing Federal Council last year started requiring banks to hold an extra 1 per cent capital cushion against real-estate risks. On Thursday, it said it will increase it to 2 per cent by June 30 at the central bank's request.

A government statement said the capital cushion has helped make banks more resilient but a "sustained strong increase in mortgage loans and the prices of residential properties" has increased imbalances that "constitute a considerable risk for the stable development of the economy."

The Swiss Bankers Association said it's disappointed by the decision saying the capital cushion isn't an effective way of controlling property prices.

  • Rate this Rate This Star Icon
  • This article has not yet been rated.
  • We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

    You can also register and/or login to the site and join the conversation by leaving a comment.

    Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Commentscomment icon

You can comment on most stories on brandonsun.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Commentcomment icon

Comment
  • You have characters left

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.

letters

Make text: Larger | Smaller

Brandon Sun Business Directory
Submit a Random Act of Kindness
Why Not Minot?
Welcome to Winnipeg

Social Media

Canadian Mortgage Rates