October 14, 2019 / 2:23 PM / a month ago

Norway's central bank opposes tightening of mortgage lending rules

OSLO, Oct 14 (Reuters) - Norway’s central bank said on Monday that rules for mortgage lending to households should not be tightened as proposed by the Financial Supervisory Authority in September.

The regulator proposed that bank customers should be allowed to borrow only up to 4.5 times a household’s gross annual income, instead of five times previously, and that banks should only deviate from rules in 5% of cases.

“Norges Bank believes that the austerity measures proposed by the Financial Supervisory Authority in the requirement for maximum debt ratio and in the flexibility ratio as a whole will constitute a significant tightening in the requirements of the regulations,” the central bank said in a letter to the ministry.

“Norges Bank believes that the requirement for maximum debt ratio should not be changed.” (Reporting by Nerijus Adomaitis; Editing by Kevin Liffey)

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