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Going Dutch

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There has been little forced selling of property so far, which is lucky since Dutch banks are up to their necks in mortgage portfolios. They face a huge “funding gap”. The loan-deposit ratio (LTD) is 183pc, compared with roughly 70pc in the US and Japan, 100pc in Germany or 120pc in Britain.

This means that Dutch lenders - like Northern Rock before them - must rely on the capital markets to roll over debts. This is courting fate. “The persistently high LTD ratio makes Dutch banks particularly vulnerable to a scenario in which market confidence evaporates,” said the Nederlandsche Bank (DNB) in its latest stability report.

:ph34r:

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One had assumed that the great wealth of the Dutch people would provide an ample cushion against shocks but fresh data from the ECB - if reliable - show that average net household wealth is just €170,000, compared with Germany (€195,000), France (€233,000), Italy (€275,000), Spain (€291,000) and Cyprus (€670,000), so perhaps we need to think again.

Cyprus showing those Germans a thing or two......

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  • 245 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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