The Swiss National Bank on Monday said it will not activate the countercyclical capital buffers on banks to safeguard against mortgage risks.
The domestic residential mortgage and real estate markets are exceptionally strong. Nonetheless, there were some indications of a possible slowdown of this momentum.
Stricter capital requirements for mortgages and a revision of the self-regulation rules for mortgage lending were announced in June this year. These measures are intended to have a dampening effect on real estate prices and mortgage market momentum.
The SNB said the risk of a further build-up of imbalances and the associated risks to financial stability remain high. As such the central bank will regularly reassess the need to activate the countercyclical capital buffer.
"No such communication is to be expected before the beginning of 2013," it said.
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