Growth in residential loans currently stands at 4.3% (second quarter 2018) and thus below its long-term average of 4.8%. 2 At the same time, there is no clear evidence to suggest that banks have loosened their credit standards for residential loans.
I will also talk about some of the challenges banks face as they adapt to the post-crisis economic and regulatory environment. I will then review recent trends in credit conditions, noting that bank lending has generally been improving but remains restrained in some areas.