As regards possible financial stability risks, we assess these risks as rather contained for now. Looking in particular at housing markets in the euro area, we don’t see any signs of general overvaluation. Important indicators for increasing financial imbalances are real estate prices and credit growth, but so far we have witnessed low growth rates of both.
Here, in the context of segments such as real estate, banks should not jump on opportunities that appear very attractive in the short term, while compromising on prudence. We do not want to squeeze the recovery and deny the needs for financing, but we do not want them to go overboard in risk taking. That’s the balance we are expecting.