Bruno Le Maire, Minister of Economy and Finance, and through this function president of the High Financial Stability Council (HCSF), is in favor of a relaxation of the rules dictated by the HCSF for real estate credit, according to information from Les Echos. What could change very soon for your credit file…
THE High Financial Stability Council (HCSF) has long been a discreet organism. Chaired by the Minister of the Economy, as stipulated in its statutes, this high committee brings together a handful of economists, the governor of the Banque de France, and the presidents or vice-presidents of the financial (AMF) and banking (ACPR) police ). An HCSF is supposed to supervise major economic decisions with a single objective: to preserve the stability of the French economy and its financial system.
However, this HCSF has been in the spotlight since the Covid-19 health crisis. The reason is that the rules he dictated to regulate real estate credit are now slowing down any resumption of household loans. What rules? To make a long story short, the credit limit is 35% debt rate and 25 years of debt duration (27 years for the construction of a house, in particular), knowing that banks can deviate from these rules but in proportions deemed reasonable by this HCSF.
Real estate credit: what has changed for borrowing since January 2022
Enjoy the sharp drop in rates to realize your project!
A proposed Renaissance law… which pleases the government
The HCSF and its rules are so strongly criticized that around twenty deputies from Renaissance, Modem and Horizons, around Lionel Causse, propose both to modify the composition of this High Council, by having a senator and a deputy sit there, and to ‘relax the regulation of real estate credit by letting banks deviate from it if they prove that this does not put them in danger. This bill aimed at supplementing the provisions applicable to the High Council for Financial Stability was tabled on January 23 in the National Assembly.
Real estate credit: these new developments that could change the rules of your loan
What’s new this Thursday, March 14? Bruno La Mairewho chairs this HCSF… supports this proposal for reform of the HCSFaccording to an indiscretion of things, citing a source close to Bercy. Moreover, the Minister for Housing, Guillaume Kasbarian admitted to him that he looked kindly on the proposed law according to AEF Info.
The banks have put themselves back in a position to make real estate loans. There is still this reflection on banks which no longer lend… I really believe that you have to go and test your banker!
The Bank of France and its governor Franois Villeroy de Galhau, however, maintains that the difficulties of the real estate sector are not limited to financing conditions. The banks have put themselves back in a position to make real estate loans. There is still this reflection on banks which no longer lend… I really believe that you have to go and test your banker! declared Franois Villeroy de Galhau on Wednesday March 13 on France Info. While recalling the slight adjustment made recently to the HCSF rules, precisely.
Lionel Causse’s bill should, according to The things soon be included on the agenda of the National Assembly, in order to be discussed in the Finance Committee before a possible vote in the Chamber.