Despite the progress made in adjusting the regulatory framework to the new reality of financial markets, supervisory authorities are faced with new challenges; the most important concerns the coordination of their action, both domestically and internationally. The crises that have occurred in the last few years show how fast tensions can be transmitted across countries, markets and intermediaries.
Even though expenditure on goods increased, households were still spending less than they were prior to the pandemic. As a result, the household saving rate rose sharply (Graph 3) and many households therefore built up large liquidity buffers, including those households with mortgages. Very low interest rates also helped many households add to their savings through reduced interest payments.