trending Market Intelligence /marketintelligence/en/news-insights/trending/fBRtuYrI6dqhUiMe_2nDmg2 content esgSubNav
In This List

Finnish regulator eyes higher risk weights for mortgage loans

Blog

Banking Essentials Newsletter: July Edition - Part 3

Blog

Banking Essentials Newsletter: July Edition - Part 2

Blog

Anticipate the Unknown Go Beyond Fundamentals to Uncover Early Signs of Private Company Credit Deterioration

Blog

Taking Loss Given Default Estimation to the Next Level: An Aspiration for All Creditors, Not Just Banks


Finnish regulator eyes higher risk weights for mortgage loans

The Finnish Financial Supervisory Authority board is preparing to set a minimum risk weight level of 15% for banks using the internal ratings-based approach to calculate capital requirements for residential mortgage loans.

This is an increase from the 10% level that was proposed in June 2016; the aim is to put the 15% level in place as from Jan. 1, 2018. The risk weighting determines the amount of capital a credit institution needs to hold to account for potential credit losses from mortgages.

No changes will be made to the current countercyclical capital buffer requirement on banks or the maximum loan-to-collateral for residential mortgage loans.