The Y2K risk premia observed in many markets for transactions over this year’s end is also an issue that we have focused on. Furthermore, as a longer term issue, we have looked at the restructuring of the international banking industry, which is the reflection of changing nature of banking business.
It would be necessary to see a sizeable reduction in the current very high level of housing output before the increase in the rate of indebtedness returns to more sustainable levels. Furthermore, conditions in the labour market are critical to borrowers’ continuing ability to service these debts.