This used to account for about 45 per cent of total dwelling construction, but has declined over the past few years, despite lower interest rates and the sizeable increase in dwelling prices. In short, there are some signs of tightening supply conditions in pockets of the country, but dwelling construction overall is responding to low interest rates much as it always has done.
Beyond our work on regulatory capital, we encourage institutions to focus on overall improvements in risk management, of which compliance-risk management is an important element. One key message is to continue to make sure the compliance process reflects the changing product and customer mix of the financial institution.