Tighter Credit Standards for the Real Estate Industry

In the National Bank’s lending survey for the 2nd quarter of 2023, credit managers in six out of the 20 surveyed banks and mortgage institutions reported that they expect tighter credit standards for business customers in the 3rd quarter of 2023. According to the credit managers, these anticipated tightening measures are primarily due to the Financial Supervisory Authority’s new guidelines on financing rental properties and real estate projects, which have introduced changes to requirements such as self-financing. Therefore, it is particularly the real estate industry that is expected to feel the impact of the tighter credit standards.

https://www.nationalbanken.dk/da/viden-og-nyheder/data-og-statistik/bank-og-realkredit/udlaansundersoegelsen/20230710-strammere-kreditstandarder-for-ejendomsbranchen