Subprime crisis background information

The assets of the four Mutual Fund Management Companies (AEDAK) that are subsidiaries of the Greek systemic banks increased by 1.8 billion euros in the first quarter of 2024.

This is indicative of the potential of the market and the rise shown by both foreign and domestic bond and equity mutual funds.

The share of cash in real estate purchases is increasing, as the relevant data show. The sharp increase in lending rates has sharply reduced the demand for mortgages, but at the same time transactions continue to move upward, along with sales prices, which are breaking one record after another.

Ljubljana – The general gravity of systemic risks to financial stability has been reduced as the economy has rebounded, but there are elevated risks stemming from the housing market and the long-term profitability of banks, according to the central bank’s latest Financial Stability Review.

The Bulgarian National Bank has taken a decision to restrict mortgage lending. The Board of Directors has decided to increase the capital buffer for banks' risk loans from 0.5% to 1% from 2021. The measure aims to ensure that vaults have sufficient reserves to cover losses on non-performing loans. As a rule, the buffer is increased when it is necessary to "cool" a large increase in credit. 

SOFIA, Sept 26 (Reuters) - The banks in Bulgaria will have to set aside additional capital as of October 2019 to counter a build-up of cyclical systemic risks linked to credit growth and real estate prices, the Bulgarian central bank said on Wednesday.

Following a nearly five-month slowdown, house sales in Turkey rose significantly in June, mainly thanks to interest rate cuts in banks' mortgage loans and discounts by real estate companies.

The  Bank of Greece on Wednesday  released its monthly report stating that the monthly net flow of total credit to the domestic private sector was negative at 458 million euros, compared with a negative net flow of 412 million in the previous month. Bank credit to the domestic private sector continued to be negative in November, with the annual rate at -2.2% from -2% in the previous month.

By Vassilis Karamanis

Greek banks are increasingly being hampered from trading currencies, one of most liquid markets, as international dealers cut back credit lines and costs soar, according to people with knowledge of the trades.

By Nikos Roussanoglou