The Reserve Bank is very much aware of both these issues. But cycles like the one we are going through seem to be endemic to the property sector and raise the question of whether, over the longer term, the financing model of the sector should shift towards more equity and less debt.
Conclusion Let me end, however, on a more positive note by making the observation that the adjustment process has been underway for some time now and substantial progress has been made. The equity raisings that have taken place have made an important contribution to reducing gearing levels, and the run-up in arrears on property loans may be coming to an end.