ECB may need to cool pervasive housing bubbles: de Guindos

FRANKFURT – Property bubbles in parts of Europe may force banking regulators to put curbs on lending and cool a market that has been growing rapidly despite a pandemic-induced recession, European Central Bank Vice President Luis de Guindos said on Thursday.

“The situation of overvaluations in certain residential markets is becoming more and more pervasive, and this is a source of concern for us,” de Guindos told a financial conference.

“We have to start to take into consideration the possibility of implementing again macroprudential measures in the banking space,” he added.