Latest news with #FinancialSupervisoryAuthority
Local Sweden
2 days ago
- Business
- Local Sweden
Swedish government proposes loosening up mortgage rules
The Swedish government and the Sweden Democrats have proposed reducing the country's amortisation requirement for mortgages as well as lowering the necessary size of a deposit from 15 percent of the property's value to 10 percent. Advertisement A softening of mortgage requirements will make it easier for young people to enter the housing market, the Swedish government said as it presented the proposal. The government also hopes that the proposed measures will reduce the number of people taking out expensive consumer loans to finance a property purchase. READ ALSO: How a new proposal could make it easier to get on the Swedish housing ladder "It is fundamentally healthy to own your own property, but unhealthy to have a consumer loan," financial market minister Niklas Wykman said at a press conference. "This will help people to cut their consumer loans and borrow more using their property as security." Wykman said that the government believes this could lead to higher property prices in the short term, with a greater supply of homes in the long term. The parties also proposed changing the amortisation requirement, abolishing the rule that households with mortgages more than 4.5 times their income have to amortise an extra percent on their mortgages, arguing that this will lower the threshold for accessing the housing market while also improving household finances. Sweden's base amortisation rule, which requires mortgage holders to amortise one percent of their mortgage per year if their mortgage is between 50 and 70 percent of the value of the property, or two percent for loans over 70 percent, will remain the same. The Riksbank central bank and the Financial Supervisory Authority have been critical of the planned changes to the rules, with their objections including concerns that they will lead to increased household debt, thereby affecting Sweden's economic stability. Advertisement Wykman said the goal of the new proposal is to 'protect a healthy amortisation culture without putting up unnecessary barriers'. 'You need different types of rules to make sure that debt doesn't take off in a way which would be unsustainable for households and for the economy,' the minister said. 'Our starting point is that you should pay back your debts – a loan is a loan.' The new rules have a proposed implementation date of April 1st, 2026.
Time of India
3 days ago
- Business
- Time of India
Sweden government plans to ease mortgage rules to help first-time buyers
STOCKHOLM: Sweden 's government said on Tuesday it planned to ease mortgage rules to help first-time buyers and those without capital for a deposit to get into the housing market. Under the plan, people wanting a mortgage will be able to borrow up to 90% of the value of their property, up from the current 85%. A current requirement for the heaviest borrowers to pay back 3% of their loan each year will be dropped. The new rules are expected to be introduced at the start of next year. "The new proposals will make it easier, for example, for first-time buyers and young families to get onto the property ladder," Housing Minster Andreas Carlson said. "At the same time, we have taken into consideration financial stability through measures to hold back indebtedness." The proposal broadly reflects recommendations in a white paper last November. Critics have said that tough mortgage rules, introduced after the financial crisis of 2008-9, are necessary to reduce risks in the banking system. Swedish home-owners are among the most highly indebted in Europe, with debts of around 180% of disposable income, down from a peak of around 200% in 2021. Most mortgages are floating rate, making households sensitive to interest rate changes and amplifying swings in the economy. The government said it also planned to strengthen the central bank's role in macroprudential oversight. The central bank will take over responsibility for setting the level of banks' countercyclical financial buffer, which has up to now been set by the Financial Supervisory Authority.
New Straits Times
3 days ago
- Business
- New Straits Times
Swedish government plans to ease mortgage rules to help first-time buyers
STOCKHOLM: Sweden's government said on Tuesday it planned to ease mortgage rules to help first-time buyers and those without capital for a deposit to get into the housing market. Under the plan, people wanting a mortgage will be able to borrow up to 90 per cent of the value of their property, up from the current 85 per cent. A current requirement for the heaviest borrowers to pay back 3 per cent of their loan each year will be dropped. The new rules are expected to be introduced at the start of next year. "The new proposals will make it easier, for example, for first-time buyers and young families to get onto the property ladder," Housing Minster Andreas Carlson said. "At the same time, we have taken into consideration financial stability through measures to hold back indebtedness." The proposal broadly reflects recommendations in a white paper last November. Critics have said that tough mortgage rules, introduced after the financial crisis of 2008-9, are necessary to reduce risks in the banking system. Swedish home-owners are among the most highly indebted in Europe, with debts of around 180 per cent of disposable income, down from a peak of around 200 per cent in 2021. Most mortgages are floating rate, making households sensitive to interest rate changes and amplifying swings in the economy. The government said it also planned to strengthen the central bank's role in macroprudential oversight. The central bank will take over responsibility for setting the level of banks' countercyclical financial buffer, which has up to now been set by the Financial Supervisory Authority.
Yahoo
5 days ago
- Business
- Yahoo
Inside information, negative profit warning - Oma Savings Bank Plc lowers its earnings guidance for 2025
OMA SAVINGS BANK PLC, STOCK EXCHANGE RELEASE, 15 JUNE 2025 AT 21:55 P.M. EET, INSIDE INFORMATION Inside information, negative profit warning - Oma Savings Bank Plc lowers its earnings guidance for 2025 Oma Savings Bank Plc (OmaSp or Company) lowers its earnings guidance for 2025 as the company's cost level is expected to remain high throughout the 2025 financial year due to investments in risk management and quality processes, increased headcount, and efforts to address the findings of the Financial Supervisory Authority's inspection. In addition, the update to the ECL model implemented during the first quarter has increased the level of credit loss provisions more than anticipated. Furthermore, fee and commission income is expected to grow more slowly than anticipated in the prevailing economic environment. OmaSp estimates that the Group's comparable profit before taxes is EUR 50-65 million for the financial year 2025. New business outlook and earnings guidance for 2025 are as follows (updated 15 June 2025): The outlook for the Company's business for the financial year 2025 is affected by the decline in market interest rates and the continued high level of costs due to IT investments and system improvements required by risk management and quality processes. In addition, the Company continues to invest in customer experience on different channels. The uncertainty of the operating environment and economic situation affects the development of balance sheet items and comparable profit for the financial year 2025. Oma Savings Bank Plc provides earnings guidance on comparable profit before taxes for 2025. Earnings guidance is based on the forecast for the entire year, which takes into account the current market and business situation. Forecasts are based on the management's insight into the Group's business development. We estimate the Group's comparable profit before taxes to be EUR 50–65 million for the financial year 2025 (comparable profit before taxes was EUR 86.7 million in the financial year 2024). Previous business outlook and earnings guidance (published 5 May 2025): The outlook for the Company's business for the financial year 2025 is affected by the decline in market interest rates and the continued high level of costs due to IT investments and system improvements required by risk management and quality processes. In addition, the Company continues to invest in customer experience on different channels. The uncertainty of the operating environment and economic situation affects the development of balance sheet items and comparable profit for the financial year 2025. Oma Savings Bank Plc provides earnings guidance on comparable profit before taxes for 2025. Earnings guidance is based on the forecast for the entire year, which takes into account the current market and business situation. Forecasts are based on the management's insight into the Group's business development. We estimate the Group's comparable profit before taxes to be EUR 65–80 million for the financial year 2025, with a clarification that the figure is expected to be below the mid-point of the range (comparable profit before taxes was EUR 86.7 million in the financial year 2024). Oma Savings Bank Plc Additional information:Karri Alameri, CEO, tel. +358 45 656 5250, Liiri, CFO, tel. +358 40 835 6712, DISTRIBUTION: Nasdaq Helsinki LtdMajor OmaSp is a solvent and profitable Finnish bank. About 600 professionals provide nationwide services through OmaSp's 48 branch offices and digital service channels to over 200,000 private and corporate customers. OmaSp focuses primarily on retail banking operations and provides its clients with a broad range of banking services both through its own balance sheet as well as by acting as an intermediary for its partners' products. The intermediated products include credit, investment and loan insurance products. OmaSp is also engaged in mortgage banking operations. OmaSp core idea is to provide personal service and to be local and close to its customers, both in digital and traditional channels. OmaSp strives to offer premium level customer experience through personal service and easy accessibility. In addition, the development of the operations and services is customer-oriented. The personnel is committed and OmaSp seeks to support their career development with versatile tasks and continuous development. A substantial part of the personnel also own shares in OmaSp. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Inside information, negative profit warning - Oma Savings Bank Plc lowers its earnings guidance for 2025
OMA SAVINGS BANK PLC, STOCK EXCHANGE RELEASE, 15 JUNE 2025 AT 21:55 P.M. EET, INSIDE INFORMATION Inside information, negative profit warning - Oma Savings Bank Plc lowers its earnings guidance for 2025 Oma Savings Bank Plc (OmaSp or Company) lowers its earnings guidance for 2025 as the company's cost level is expected to remain high throughout the 2025 financial year due to investments in risk management and quality processes, increased headcount, and efforts to address the findings of the Financial Supervisory Authority's inspection. In addition, the update to the ECL model implemented during the first quarter has increased the level of credit loss provisions more than anticipated. Furthermore, fee and commission income is expected to grow more slowly than anticipated in the prevailing economic environment. OmaSp estimates that the Group's comparable profit before taxes is EUR 50-65 million for the financial year 2025. New business outlook and earnings guidance for 2025 are as follows (updated 15 June 2025): The outlook for the Company's business for the financial year 2025 is affected by the decline in market interest rates and the continued high level of costs due to IT investments and system improvements required by risk management and quality processes. In addition, the Company continues to invest in customer experience on different channels. The uncertainty of the operating environment and economic situation affects the development of balance sheet items and comparable profit for the financial year 2025. Oma Savings Bank Plc provides earnings guidance on comparable profit before taxes for 2025. Earnings guidance is based on the forecast for the entire year, which takes into account the current market and business situation. Forecasts are based on the management's insight into the Group's business development. We estimate the Group's comparable profit before taxes to be EUR 50–65 million for the financial year 2025 (comparable profit before taxes was EUR 86.7 million in the financial year 2024). Previous business outlook and earnings guidance (published 5 May 2025): The outlook for the Company's business for the financial year 2025 is affected by the decline in market interest rates and the continued high level of costs due to IT investments and system improvements required by risk management and quality processes. In addition, the Company continues to invest in customer experience on different channels. The uncertainty of the operating environment and economic situation affects the development of balance sheet items and comparable profit for the financial year 2025. Oma Savings Bank Plc provides earnings guidance on comparable profit before taxes for 2025. Earnings guidance is based on the forecast for the entire year, which takes into account the current market and business situation. Forecasts are based on the management's insight into the Group's business development. We estimate the Group's comparable profit before taxes to be EUR 65–80 million for the financial year 2025, with a clarification that the figure is expected to be below the mid-point of the range (comparable profit before taxes was EUR 86.7 million in the financial year 2024). Oma Savings Bank Plc Additional information:Karri Alameri, CEO, tel. +358 45 656 5250, Liiri, CFO, tel. +358 40 835 6712, DISTRIBUTION: Nasdaq Helsinki LtdMajor OmaSp is a solvent and profitable Finnish bank. About 600 professionals provide nationwide services through OmaSp's 48 branch offices and digital service channels to over 200,000 private and corporate customers. OmaSp focuses primarily on retail banking operations and provides its clients with a broad range of banking services both through its own balance sheet as well as by acting as an intermediary for its partners' products. The intermediated products include credit, investment and loan insurance products. OmaSp is also engaged in mortgage banking operations. OmaSp core idea is to provide personal service and to be local and close to its customers, both in digital and traditional channels. OmaSp strives to offer premium level customer experience through personal service and easy accessibility. In addition, the development of the operations and services is customer-oriented. The personnel is committed and OmaSp seeks to support their career development with versatile tasks and continuous development. A substantial part of the personnel also own shares in OmaSp. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
