Swiss Regulator Warns on Mortgages Amid Correction Risk: Blick

Some banks in Switzerland are overly lax in approving mortgages at a time when there’s a growing risk of a correction in houses prices, the head of Swiss financial regulator Finma said in an interview with Blick newspaper.

“At many banks, exceptions to internal lending criteria range between 25 and 40%,” Finma Chief Executive Officer Stefan Walter said in the interview. “When we identify this, we warn these institutions that it is neither in the bank’s nor their customers’ interest.”