The single currency has completely removed exchange rate risks for exporters and importers, debtors and creditors across the 12 countries of the euro area and has thus eliminated the costs of hedging exchange rate risks vis-à-vis other euro area countries.
The mortgage bank might experience a situation resembling a “run”. This type of risk did not exist previously. The sector has worked actively with this issue, e.g. by spreading auctions. Whereas all adjustable-rate loans were previously refinanced at the same time, auctions now take place several times a year. Around half of the refinancing now takes place in other months than December.