Safeguarding the Danish mortgage-credit model

The Minister for Business and Growth has today presented a bill which removes the mortgage-credit institutions’ refinancing risk and safeguards the Danish mortgage-credit sector.
News
Thursday, November 28, 2013

The bill alters the rules for issuance of bonds for the continuous refinancing of mortgage loans in cases where the loan term is longer than the term on the underlying bonds which fund the loan. The bill handles the mortgage-credit institutions’ refinancing risk.

The Minister for Business and Growth Henrik Sass Larsen:

Today I am very pleased to present a bill which handles the mortgage-credit institutions’ refinancing risk.
The bill safeguards the Danish mortgage-credit model to the benefit of financial stability and to Danish society.
The bill makes sure that the Danes, also in the future, will have access to a broad spectrum of loans for housing finance.

The bill has been in a public hearing and has been discussed continuously with relevant stakeholders. On that background the bill has been made more flexible in order to create a model which benefits the credit institutions, investors and borrowers and at the same time underpins financial stability.

After today’s presentation the bill will go through the parliamentary procedure with the aim of enactment at the beginning of 2014.

Fact sheet

Bill for An act to amend the Act on Mortgage-Credit Loans and Mortgage-Credit Bonds, etc., and the Financial Business Act.