A temporary financing group has been established at RT to support RT's advocacy and position-building regarding housing construction and home purchase financing. The establishment and composition of the group was decided by RT's board, which also monitors the progress and outputs of the work.
The availability of financing is becoming an increasingly serious bottleneck, especially for the start-up of owner-occupied housing. The change to the Credit Institutions Directive, the so-called Basel regulation, has tightened and is tightening banks' RS lending even further and is increasing banks' capital requirements. Banks are also interpreting the regulation unnecessarily strictly. In addition, housing financing has been tightened by the decisions of the Financial Supervisory Authority from a macroprudential perspective.
RT, together with the Finnish Financial Services Association, has long been pushing for changes to the regulation of housing finance. For example, during last spring's budget spending limits debate, RT's proposals were implemented when it was decided to ease the regulation of housing finance, including the duration of housing loans and the use of housing company loans.
The newly established financing group supports RT's position-building and advocacy, so that we can influence the needs for change in construction financing and housing lending even more effectively in the future. The group can plan its own activities, taking into account the legislative work and the work schedules of the working groups established by the state.
Appointed as the group's chairman Juha Metsälä Pohjola Construction Oy names the group's most important goals and activities as, among other things, studying the content of Basel regulations and other housing financing models in the Nordic countries, meetings with commercial banks, and preparing presentations for working groups established by the state regarding the so-called intermediate models.
The requirements of competition law are strictly followed in our work.
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More information
Anu Kärkkäinen
Director, Economic Policy Affairs
anu.karkkainen@rt.fi + 358 50 337 6699Building Construction Industry Association