These include a more stringent qualifying test that requires all borrowers to meet the standards for a 5-year fixed-rate mortgage as well as a reduction in the maximum loan-to-value ratio of refinanced mortgages and a higher minimum down payment on properties not occupied by the owner. In addition, the Bank of Canada’s interest rate increases reminded households of the interest rate risks they face.
That corresponds to roughly 250% of Germany’s gross domestic product (GDP) and 28% of the total assets in the monetary union. In Germany there is also a comparatively large number of banks. If we leave out the branches of foreign banks in Germany, there are around 1,700 credit institutions. That constitutes one-third of the total number of banks in the monetary union.