Statement from the SBA regarding the decisions made by the Swiss Federal Council for the real estate sector

  • The SBA has always shown itself to be open to additional measures for the prevention of possible exaggerations in the real estate sector
  • The SBA is very pleased that the Swiss Federal Council has followed the recommendations made by the banks and that it has spoken out in favour of moderate additional measures that can be implemented by the banks themselves within the parameters of proven self-regulation.
  • By implementing this self-regulation, the banking sector will make a significant contribution to the improvement of the strained situation in the real estate market. It will come into effect on 1 July 2012, and consists of the following two minimum requirements for mortgage financing:
    - A minimum of 10% equity capital, not originating from second pillar assets
    - Amortisation within 20 years to 2/3 of the loan value
  • The SBA accepts the anti-cyclical capital buffer in principle, but has the following expectations:
    - Before a decision to activate the buffer, the affected sector should also be heard.
    - Cumulative effects are to be avoided. This signifies that the impact of the measures currently taken by the banking sector must first be evaluated before a possible activation of the anti-cyclical capital buffer can take place.