Other explanations include slower than expected trend growth, especially in advanced countries, and a shift in these countries to production that is less intensive in traditional forms of business investment in plant and machinery and equipment.
In relation to mortgage finance, lenders have been requested to adhere to prudent norms in regard to loan-to-value ratios of houses and conventionally accepted income multiple norms. As I mentioned earlier, institutions have also been required to undertake sensitivity analyses in relation to adverse events such as an economic downturn or a sizeable interest rate increase.