European regulators are watching commercial property markets more closely as sharply rising valuations increased potential risks to general financial stability, according to Mark Carney, governor of the Bank of England.
European regulators are watching commercial property markets more closely as sharply rising valuations increased potential risks to general financial stability, according to Mark Carney, governor of the Bank of England.
Speaking to the European Parliament in his capacity as deputy chair of the European Systemic Risk Board (ESRB), Carney said huge inflows of cross-border equity was pushing up pricing considerably and this was leading to commercial real estate valuations moving 'quite notably' in a number of markets.
Carney continued: 'We are watching some developments, including the developments in effectively the publicly traded commercial real estate markets to ensure that is not a potential amplification channel of financial stability.'
'At this stage we are not taking any action in the UK but from an ESRB perspective, monitoring this makes sense,' he added.