Victory for German lenders in asset review

German banks - including Deutsche (DB) and Commerzbank (CRZBF, CRZBY) - will not have to hand over details of mortgage loans as part of the ECB's asset quality review, reports the FT.

The German housing market is its own bird, with borrowers often having higher down payments and locking in rates for at least 10 years. The home ownership rate is just 44% compared to Spain at 83%. Because of the lack of activity, German banks traditionally value their loans when the mortgage is taken out, as opposed to other banks who more frequently update their portfolios.

New rules will force banks to revalue loans which haven't been independent assessed in over a year, essentially meaning a costly national revaluation in Germany. It is this the German bankers lobbied against and it appears they've successfully made their case.

German real estate has gotten perky over the past few years, with the Bundesbank naturally sounding warnings, but private economists note the gains have been modest by true bubble standards.

From other sites
Comments (0)
Be the first to comment
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs