Netherlands Bank report urges restructuring of mortgage finance

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The first ever meeting of The Netherlands' Financial Stability Committee, set up by the government in November last year, has focused on ways of stabilising funding sources for mortgage lending.

A report from the meeting, published today (8 January), said high mortgage indebtedness was causing banks to rely heavily on market funding, which made banks vulnerable and reduced investment in Dutch banks' mortgage portfolios. This was being passed on to consumers in reduced mortgage lending.

The

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