Some factors that explain this are increased raw material costs, rising incomes and hence a demand for better quality housing, urbanisation in the face of limited land availability and improved access to institutional financing. In the Reserve Bank, we are sensitive to the financial stability implications of rapid build up in house prices.
The purpose of imposing a moratorium is to prevent a run on the bank, stop asset stripping and give time to the regulators to identify a suitable strong bank for takeover. The process of merger is put through as expeditiously as possible in a transparent and consultative manner.