2/5  BIS central bankers' speeches  But lending is growing at a below-average pace by historical standards. And overall, credit standards have not changed remarkably – household debt, for instance, has remained almost static. Overall, we currently see no need to activate any macroprudential instruments in order to contain risks to financial stability emanating from the residential real estate market.
We are, however, continuing to closely monitor this market. Because the strong appreciation in prices harbours the risk that the quality of loan collateral is possibly being overestimated. In the event of a correction, the value of collateral might decline unexpectedly sharply, pushing up losses from residential real estate loans as a result.