4  BIS Review 44/2010  Important as this goal is, it will not be easy to achieve for many banks. For example, one means to this end would be to operate a bank with much higher capital ratios and thereby lower concentrations.
The combination of these factors means that the nature of financing matters, not just for the functioning of property markets themselves, but for the broader economy and society as a whole. The historical evidence here is plentiful. Fragilities in financing of property markets – whether in housing or commercial real estate – can create economy-wide problems.