The other development that has clearly increased risk is the exceptionally fast increase in borrowing for residential property for investment purposes, and the accompanying rapid expansion in apartment building, which show all the signs of a seriously over-extended market. As far as we can judge at this stage, the rise in household debt does not pose a significant danger of a financial crisis, i.e.
the failure of significant financial institutions such as occurred in the early 1990s after the build-up in corporate debt. But it does suggest that household consumption will be a lot more sensitive to economic conditions than hitherto.