In addition, there may be room to raise the participation rate of the elderly by changing the incentives for retirement and adopting new employment practices on the side of corporate management, even though the participation rate of the elderly in Japan is relatively high by international standards and has shown a declining trend in recent years.
Third, the still high debt levels could give rise to concerns about public and private sector debt sustainability. Fourth, the euro area investment fund sector continued to expand and increase its risk-taking while facing liquidity mismatches. Some of these risks depend strongly on global developments, whereas others – including real estate risks – are more specific and should be addressed through macroprudential policies.