1  -2Delta has also prolonged supply bottlenecks. Single-family home construction permits declined again in August for the third consecutive month despite very strong housing demand, as builders faced shortages of materials. Auto production was paused at a number of North American plants in early September following COVID-induced shutdowns of semiconductor production in Malaysia and Vietnam.
At the same time, the process of financial integration may entail certain risks to monetary and financial stability, such as increased vulnerability of domestic financial systems to external shocks and intense competition that may lead to an erosion of credit standards. So while we strongly support further integration in mortgage markets, we are also of the view that this process should be carefully monitored.