[6]  As a result, despite being a net debtor nation, Australia enjoys a transfer of financial wealth from abroad when the Australian dollar depreciates, other things equal. [7]  Debelle G (2017a), ‘How I Learned to Stop Worrying and Love the Basis’, Speech at the BIS Symposium: ‘CIP – RIP?’, Basel, 22 May.
They are established in “good” times, ie times in which there is a risk of a credit bubble emerging. They consequently have a dampening effect on lending and ensure that banks have reserves in “bad” times. Measures aimed only at individual business areas are also conceivable. For instance, capital backing for real estate loans could be raised in order to dampen lending.