The private financial resources available to the SRF could prove insufficient in the event of a systemic crisis. The importance of a public backstop was already acknowledged in the late 2013 ECOFIN Council’s conclusions on the Single Resolution Mechanism (SRM).
This may be a result of the increase in loan-to-value restrictions, higher funding costs being experienced by banks, and tighter credit criteria being applied by banks in connection with financing apartment development and house purchases by offshore residents. 4. Monetary Policy Considerations  We enter 2017 with considerable political and economic uncertainties.