FRANK­FURT:

The Pak Banker - - FRONT PAGE -

Mort­gage lend­ing is a ma­jor source of dif­fi­culty for euro zone banks but macro­pru­den­tial mea­sures have so far pre­vented ad­verse de­vel­op­ments, the head of the euro zone's bank­ing reg­u­la­tor told me­dia on Sun­day.

Ul­tra low in­ter­est rates across the euro zone have in­creased the chance that as­set bub­bles will be formed and the Euro­pean Cen­tral Bank has al­ready warned that com­mer­cial real es­tate has be­come over­priced.

"A pos­si­ble source of dif­fi­cul­ties for banks are real es­tate mort­gages," Daniele Nouy, head of the ECB's Sin­gle Su­per­vi­sory Mech­a­nism, said in an in­ter­view with the news agency. "We have so far not seen any ad­verse de­vel­op­ments."

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