Accordingly, banks are introducing the advanced approaches for the calculation of capital requirements so as to be better placed to identify opportunities in the credit market and be able to exploit them through more focused marketing initiatives and better pricing.
On the asset side of the balance sheet, the decline in longer-term interest rates and diminished perceptions of credit risk in recent months have provided a substantial lift to the market value of nearly all major categories of household assets. Most notably, historically low mortgage interest rates have helped to propel a solid advance in the value of the owner-occupied housing stock.