Swiss Banks Risk Significant Losses From Commercial Real Estate, Watchdog Finma Says
- Banks exposed to falling property prices, regulator warns
- Investment real estate loans to get higher risk weighting
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Swiss banks face a “significant loss potential” in the event of corrections on property markets, financial regulator Finma said.
Many lenders have a large proportion of investment property loans in their mortgage portfolios, which involve higher risks than lending for owner-occupied housing, the regulator said in a press release on Wednesday.