Switzerland’s financial regulator, FINMA, has issued a warning to banks regarding potential risks associated with easing mortgage lending standards. The regulator highlighted concerns about affordability assessments and their impact on the overall financial system. FINMA’s CEO, Urban Angehrn, reported that lax guidelines are impacting 25-40% of lending decisions. This may lead to regulatory adjustments, potentially affecting mortgage financing capacity and credit availability. While no significant reactions from the crypto sector have been observed, the warning could impact the traditional banking industry in Switzerland, including mortgage-backed financing and related markets.