Furthermore, part of the increase in property prices was pledged as collateral for loans to buy other tangible and financial assets than agricultural properties or equipment and fixtures. In other words, part of the added value has been “consumed “ or used for speculation. Moreover, there is still a substantial need for a change of ownership in the sector.
For that reason, we intend to have overlapping comment periods for the NPRs of both proposed Basel II and the proposed Basel I amendments, so that banks and others can review and comment on both NPRs at approximately the same time.