•  The combination of regulatory and private sector responses around the world seems likely to result in reduced financial risk-taking in the foreseeable future. Regulators are taking much-needed action to ensure that risks are better managed, and the appetite for financial risk in the household and business sectors now is clearly much less than it was.
The latest stress tests indicate that the banking system can withstand shocks. As the current credit expansion cycle gains momentum, BoU remains focused on maintaining strong supervision to ensure that banking sector loans and advances do not drastically worsen if the economic growth momentum unexpectedly slows down.