Nov
27
SNB Says Some Lenders Show ‘Imprudent’ Stance on Rate Risks
By-
Low rates likely to continue weighing on bank profitability
-
SNB Vice President Fritz Zurbruegg comments in Bern speech
Swiss banks focused on property lending are taking more risks to compensate for the impact of record-low interest rates, increasing the threat of a real-estate bubble, Swiss National Bank Vice President Fritz Zurbruegg said.
“Exceptionally low interest rates are putting pressure on interest rate margins and this is weighing on the profitability of Swiss banks,” Zurbruegg said in a speech in Bern on Thursday. That “creates an incentive for banks to step up their exposure to interest-rate risk and adopt an imprudent attitude in their affordability assessment.”…
SNB Says Some Lenders Show ‘Imprudent’ Stance on Rate Risks
