And papers placing emphasis on the importance of financial stability had been released only by the BIS and some other organizations. Needless to say, however, numerous central banks have focused on the importance of “leaning” since the financial crisis, and it is a matter of common knowledge that they have generally come to have more financial stability-related duties compared to in the past.
Problems with the foreclosure process, government programs and forbearance by lenders are all delaying the adjustments. 13 Absent more aggressive restructuring, the impact of negative equity on one-quarter of U.S. homeowners will weigh on consumption for the foreseeable future. Implications for households Encouraged in part by low interest rates, Canadian household credit has expanded rapidly during the recession and throughout the recovery.