Denmark takes steps to avoid property market overheating

Copenhagen

DENMARK'S financial regulator is policing banks more closely to ensure lax credit standards aren't fuelling an overheated property market.

The Danish Financial Supervisory Authority (FSA) is investigating whether banks are lending borrowers more than they can afford, according to Kristian Vie Madsen, the Copenhagen-based agency's acting head.

"We see high growth in real estate prices in Copenhagen and Aarhus, especially for flats, and at the same time you have very low interest rates," Mr Madsen said in a phone in…