Financial stability - Rising interest rates and prices can challenge banks’ customers

Analysis - June 2022 - No. 7

Authors Danmarks Nationalbank
Subject Financial stability; Stress tests reports; Denmarks Nationalbank´s analyses of financial stability; Banks
Type Analysis
Year 2022
Published 9 June 2022
Abstract icon Housing lending is still driven by loans with deferred amortisation, and variable interest rate have become more prevalent. An amortisation requirement for homeowners with a high loan-to-value ratio may contribute to a more resilient housing market. The ability of some companies to service their debt is put under pressure by higher energy and commodity prices and an interest rate hike. (Appendix 1 has been revised 16. June 2022).