April 4, 2019 / 7:36 AM / 2 months ago

FINMA boss calls for measures to counter mortgage market risks

BERN, April 4 (Reuters) - Swiss financial market supervisor FINMA sees the need for additional measures to combat overheating in the Swiss investment property market and the associated risks to the overall mortgage market, boss Mark Branson said on Thursday.

“The mortgage market is critical to the stability of the Swiss financial centre. It is too big to fail,” Branson told journalists at FINMA’s annual news conference. “Rising prices could lead to a considerable imbalance on the market, as we are observing stagnating rents and increasing vacancies in parallel with rising prices. We intervene when individual institutions take on excessive risk, but we believe this is not enough to counteract the generalised overheating trends we are currently seeing.”

Branson warned that overall risks could only effectively be combated through changes to regulation or self-regulation. (Reporting by Brenna Hughes Neghaiwi; Editing by Michael Shields)

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