New Basel rules may hit Dutch banks on mortgages: FD

Dutch banks are going to find it more difficult to finance the Dutch ‘mortgage mountain’ because of new supervisory rules, the Financieele Dagblad reports on Thursday.


Proposals from the Basel Committee on Banking Supervision will make it a requirement that foreign banks wanting to buy bundles of Dutch mortgages have much higher capital buffers, the paper says.
The bundling and selling of mortgages (known as securitisation) is an important source of finance for Dutch banks which have high mortgage loans but are relatively low on public savings.
The paper says a strong lobby is working to have this proposal made more flexible.

Thank you for donating to DutchNews.nl.

We could not provide the Dutch News service, and keep it free of charge, without the generous support of our readers. Your donations allow us to report on issues you tell us matter, and provide you with a summary of the most important Dutch news each day.

Make a donation