Of course, extension of credit to new borrowers at a time of diminishing spreads coupled with little understanding of risks may be a source of concern regarding financial stability, especially if house prices become stretched. 2  BIS Review 13/2007  This brings me to a second issue, of housing finance as a channel of monetary transmission.
Although household debt to disposable income remained at elevated levels and the profile of credit-active consumers worsened somewhat in the fourth quarter of 2010, the improved outlook for economic growth in 2011 could boost the confidence level of consumers in South Africa.