Bafin boss warns for rising real estate prices – 30.09.18

The real estate boom in Germany ensures that the BaFin is concerned about financial supervision. "The trend in the property price is worrying," said BaFin boss Felix Hufeld the "Handelsblatt" a preliminary report from Sunday. According to whether prices continue to rise and there is excessive credit growth, the Bafin will intervene to ask banks to build additional capital buffers for real estate risk. "

In Germany, house prices are rising faster and faster, especially in metropolitan areas. According to a study by the Association of German Cooperative Banks, property prices in the six largest German cities rose by 11.6 percent last year – about twice as high as the German average.

The BaFin will also "draw an increased attention" to the lending of banks, said Hufeld the newspaper. "" We are concerned that some institutions in the credit sector are very aggressive and apparently are releasing part of their lending standards. "A too lax credit can lead to major problems." "If other risk factors are added at the same time, such as geopolitical risks or a slump in the economy and real estate prices, a perfect storm can be a threat."

Source: Kai Hartmann Photography / BaFin

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