Economic activity bounced back relatively quickly, as did house prices supported by resilient demand, low interest rates and an historic lack of supply.8 Having announced in April 2020 that we would be removing LVR restrictions for a year, by December 2020 we produced a consultation document foreshadowing an earlier reintroduction of LVRs.
The Federal Reserve is able, nevertheless, to maintain a flow of information about the risk profiles and risk management practices of all large banking organizations through its responsibilities as exclusive supervisor of all bank holding companies. It is for this reason that the Federal Reserve places such a great emphasis on maintaining its role as supervisor of bank holding companies.