01 July 2022

Minutes of the Financial Stability Committee meeting 13 – 14 June 2022

The minutes of the Financial Stability Committee meeting 13 – 14 June 2022 has been published. The Committee discussed the current situation and outlook for financial stability and the principal risks to financial stability, such as economic developments, risks faced by financial institutions and the financial system, developments in domestic financial markets, household and corporate debt, the real estate market, and financial institutions’ capital position. The Committee also discussed the security and efficacy of financial market infrastructure and its importance for financial system stability. The Committee received information on resolution plans for the systemically important banks and on the preparation of an official financial stability policy, on which the Financial Stability Council is currently working.

The FSN decided to lower the maximum loan-to-value (LTV) ratio on mortgage loans to first-time buyers from 90% to 85% but the keep the ratio for other buyers unchanged at 80%. The Committee also decided to set a reference interest rate for the calculation of debt service in the Rules on Maximum Debt Service-to-Income Ratios for Mortgage Loans to Consumers. The reference rate is set at a minimum of 3% for indexed mortgages and 5.5% for non-indexed mortgages. Furthermore, the Committee decided to shorten the maximum loan period used to calculate debt service on indexed loans to 25 years. In its quarterly review of the countercyclical capital buffer (CCyB), the FSN decided to hold the buffer unchanged, as it had decided in September 2021 to increase the buffer from 0% to 2%, effective at the end of September 2022.

The Committee reiterated the importance of enhancing security in domestic payment intermediation and expediting the implementation of an independent retail payment solution.

See the minutes here: Minutes of the Financial Stability Committee meeting, 13 – 14 March 2022 (13th meeting). Published 1 July 2022.

See further information on the committee here.