In our case, loan impairments in our mortgage institutions due to household exposures – and these institutions provides by far most of lending for housing – cumulates to less than 1 per cent of lending over the entire 5–6 years since the collapse of the housing bubble. Also for the banking sector itself, write down of household exposures have been very limited.
The methods used to construct these estimates would be subject to regulatory requirements and supervisory guidance and review, including a requirement that the risk parameters used for pillar 1 be consistent with risk assessments actually used by the bank for its internal risk management.