Growth in private-sector gross fixed capital formation remains weak but it improved somewhat in the second half of 2014 and the first quarter of 2015, following a contraction in the first half last year. Household consumption expenditure grew by less than 2 per cent amid low credit extension to households, weak employment growth and a sharp decline in consumer confidence.
Where a stable, functionally viable financial system is concerned, it is not enough to monitor individual banks. Due regard also needs to be given to the interrelationships between financial market agents and the financial system as a whole. Macroprudential policy now fills this gap.