ECB report says EU banks need to exercise caution

The European Central Bank said in a report on Tuesday 7 November that EU banks need to exercise caution with their mortgage lending because of the risk of some households getting into financial difficulties.

"The strength of competition in mortgage markets... suggests that banks need to carefully monitor the risks they are taking in mortgage markets," the ECB's banking supervision committee said in a report on EU banking sector stability.

Lending to households has grown at a brisk pace, and

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