It is deeper: the growth rates for assets, deposits, and loans in our banking sector recently reached historic highs. And at the same time it is more solid: during this rapid expansion, solvency ratios have remained well above the minimum capital asset ratio (9%). Loan portfolio quality (measured by the percentage of risky loans) has improved steadily too, on average.
Of course, there are important risks to be addressed by financial institutions and authorities alike. As we argued in our recent Financial Stability Report, the rapid growth in consumer lending is one concern. The undiversified nature of the portfolio of our non-bank financial institutions is another. We also argued that now is a good time to continue to make improvements in our regulations.