These questions have challenged traditional assumptions that lending for housing purposes is generally a safe and low-risk activity, and highlighted potential dangers that central banks and banks need to be concerned about.
Secondly, the current accommodative stance of monetary policy coupled with the increased competition in  BIS central bankers’ speeches  1  the housing market calls for greater vigilance by banks in monitoring risks linked with housing loans. In Mauritius, credit for housing purposes has always constituted a large share of total credit to households.