Mortgage loan: The Bank of France is concerned about the bill

The economic situation in France is being debated due to a possible change in the rules governing mortgage loans. A new bill is being discussed at the level of the Chamber of Deputies and proposes to introduce changes to the High Council for Financial Stability (HCSF) in order to eliminate deficiencies and expand its powers.

Established in 2013, HCSF is primarily responsible for overseeing the financial system of France and regulating the activities of banks in the area of mortgage lending. Recent restrictions introduced to prevent overheating in the real estate market, reduce loan terms, and establish a mysterious "effort percentage" have led to a sharp decline in mortgage lending volumes in the country by 40% in 2023.

New proposals to ease these restrictions have raised concerns at the Bank of France, which expressed doubts about the effectiveness of self-regulation and the potential impact on the stability of the country's financial system.