OSLO, Dec 10 (Reuters) - High household debt levels and high property prices pose significant risk to Norway’s financial stability, the country’s bank regulator said in a report on Tuesday.
“Many households have a very high debt burden and limited financial buffers. If the level of interest remains low, there is a risk that vulnerabilities will build up in households and firms in the coming years,” the Financial Supervisory Authority (FSA) wrote.
“The debt burden, measured by the ratio of debt to disposable income, has reached a historically high level and is higher than in the majority of other countries. The growth in household debt has gradually abated and is now roughly in line with the increase in households’ disposable income,” it added. (Reporting by Terje Solsvik, editing by Gwladys Fouche)
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