In relation to financial stability, this requires enhanced vigilance. If interest rates rise, this may lead to losses on the credit institutions’ assets and the collateral behind their lending. For households, the costs of borrowing to purchase a home are historically low at present, even if the announced increases in administration margins are taken into account.
Several regulatory initiatives are ongoing with the aim of monitoring crypto-asset markets, separating crypto-asset markets from the core financial system, and addressing risks in cryptoasset markets. The Financial Stability Board coordinates international regulatory and supervisory approaches to crypto-asset activities. In 2020, it published recommendations on the regulation, supervision and oversight of global stablecoin arrangements. [46] Updated recommendations are scheduled for publication in July 2023.