Home equity was a large share of the total assets of low- and moderate-income families prior to the recession, so the drop in housing wealth has hit many families particularly hard. Because wealth is one of the key factors that households consider when deciding how much to spend, the drop in housing wealth is expected to reduce household expenditures – the so-called wealth effect.
Your Excellency The banking sector continues to exhibit resilience in the face of various local and global turbulences. The sector has also continued to grow and now consists of 43 commercial banks, 2 mortgage finance houses and 123 foreign exchange bureaus. The first Deposit Taking Microfinance Institution was also launched last week.