time is of The essence. In the case of investment properties, the mortgage market is running hot. For months, the Swiss national Bank warns of the risks that may arise from it. The financial market Supervisory authority (Finma) and the Treasury Department expect to in August, a statement from the banks. Until then, they need to set stricter rules in the mortgage business. This is not done, is take the Federal measures.
to prevent this, the industry is working under high pressure, proposals for a more stringent self-regulation. About the bankers Association of the negotiations, such as the common solution could look like is currently underway. A few days ago, the "Aargauer Zeitung" also helped first vertices. According to the report, real property may be less invested is high with mortgage . The maximum mortgage debt to decline in relation to the property value from 80 to 75 percent. In addition, the mortgage must be paid off faster. The banks of the supervision would meet.
"Internal opinion-forming in the hallway"
A spokeswoman for the bankers Association confirmed that during the discussions, the instruments "payback period" and "loan-to-value ratio" will be discussed in Detail. The values are not confirmed but. Because even within the industry, they are not a long time fix. "In Parallel to the ongoing negotiations with the authorities, our internal opinion formation is still in progress," confirms the spokesperson. However, the bankers Association, assume, to arrive in spite of the possible nuances in the assessment of the situation a clear decision. The opinions are, but: "I hope we can agree, because there is not much time," says an Insider. In the case of the common requirements not only all the banks have to follow suit, the Finma must agree.
Particularly the cantonal banks were reluctant to date against the uniform guidelines. They have settled in the last few years in the mortgage market, the big banks have lost market shares. If the first proposals are in the sense of the cantonal banks, however, remains open. "We don't," said a spokesman for the Association of Swiss cantonal banks to comment on the Figures. The cantonal banks would bring on the bankers Association and the solution also support it. "But we are still skeptical as to whether a comprehensive regulation is the most efficient solution for the Problem in the case of investment properties," said the spokesman. The Association believes that targeted institution-specific measures of supervision for individual banks to make more sense.
"The effect of such measures is backward-looking, corrective and not preventive."Finma chief Mark Branson
The Finma to intervene only in the case of the banks to high risks. The supervision already. And The effect of such measures was backward-looking, corrective and not preventive, so the Finma chief Mark Branson. To have you next an outlier in the handle and dive soon. The approach is not worth more therefore. Since recently, the 18 banks conducted stress test, it is clear that several banks could get into trouble. With the big banks, sees itself as well equipped and would, therefore, have no Problem with that, if the results of the stress would be released tests. Therefore, little understanding for the reluctance of the cantonal banks is there to be felt.
Problem not solved, only
moved if it is not possible for the banks to agree on a compromise, the Finma is already possible measures in the quiver. "The Alternative would be a tightening of capital regulation with a view on the Capital adequacy of investment properties," said a spokesman. Then loans for investment properties, which are invested with more than two-thirds of the market value would have to be stronger with capital. This would also take account of the fact that residential investment property to owner-occupied properties at an increased risk.
the Problem is not likely to be the for the cantonal banks, though. They are very well capitalised, the business is going well. You it is likely to fall slightly, the investment properties with more capital to hedge. Thus, the Problem of rising risks would not be solved in the mortgage market, but simply moved. To avert the risk of a sharp price correction, it needs according to insiders, a Change on the demand side, i.e. in the case of the investors in real estate projects. As long as they are desperately seeking for a little return, and it will change to nothing except the supposed safe rate of return is the property for you unattractive. (Editorial Tamedia)
Created: 17.05.2019, 20:35 PM