ECB says stress in home loans manageable despite high rates, lax checks

FRANKFURT, May 15 (Reuters) – Stress in the euro zone market for home loans is “manageable” despite higher interest rates stretching borrowers and lax checks by some banks, the European Central Bank said on Wednesday.

Record high interest rates, imposed by the ECB to bring down inflation, have taken a toll on house prices, particularly in countries where there had been boom when rates were low, such as Germany.

The ECB reviewed the mortgage books of 37 euro zone banks, accounting for 40% of the sector’s 3.7 trillion euros ($4.00 trillion) exposure to residential real estate (RRE).

Source: REUTER