Financial conditions in Denmark tighten in Q1

Person paying with a credit card

Almost half of Danish financial institutions reported stricter credit standards in the first quarter of 2017, states a survey conducted by the National Bank of Denmark.

The main reason for the reduction in credit has been the implementation of a new regulation on mortgage lending, report the banks. The regulation restricts access to flexible-rate housing loans with short-term interest-rate fixing for highly indebted households or high loan-to-value ratios.

The survey places the net tightening

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