26 Purchase of existing homes is not regarded as investment by the household sector as a whole, as buying and selling of existing homes is a transfer between households. Ref #7076865 v2.1  17  This brings me to my final observation, which is the role the financial system plays in these dynamics.
Domestic deposit growth has slowed over the past year and continues to be outpaced by credit growth, meaning the banking system’s exposure to offshore funding markets has increased recently, albeit at longer maturities. If the gap between credit and deposit growth is sustained, banks will likely become more dependent on offshore markets to sustain credit growth and replace expiring funding.