Another aspect concerns adjustable-rate mortgages specifically. During the financial crisis, financial institutions generally saw their funding sources in the market drying up. This was the reason why many governments found it necessary to issue state guarantees to financial institutions. The rules now on the drawing board therefore pose requirements on stable funding.
The definition of stable funding implies that Danish mortgage-credit bonds with a remaining term to maturity of less than one year cannot be included. Moreover, lending with a maturity of more than one year must be covered by stable funding. Such a rule highlights the risk associated with Danish adjustable-rate mortgages.