For instance, in some countries, non-banks had emerged as significant mortgage providers since nondeposit funding was so cheap during the low-for-long period. Since market funding costs have increased more quickly than deposit funding costs, these non-banks are no longer as competitive in offering mortgages. 28. In inflation-adjusted terms, the real declines in house prices are of course even greater. 29.
Lower credit risks and the improvement in capital and liquidity positions have also been driven by the rollout of macroprudential policy frameworks and the supervisory policies of the Single Supervisory Mechanism. 30. Of course, it is essential for central banks to continuously monitor financial stability risks, especially in the context of a significant monetary policy tightening cycle. 31.