According to the Federal Reserve's Flow of Funds accounts, household and nonfinancial business debt contracted in the first half of the year and appears to have decreased again in the third quarter. For households, residential mortgage debt and consumer credit fell sharply in the first half; the decline in consumer credit continued in July and August.
These developments were seen as vital in the recent report on financial stability prepared by the Economic and Financial Committee, which I have already mentioned. BIS Review 42/2000  4  I see the Banking Supervision Committee as a natural forum for the deepening of cooperation along these lines.