In contrast, the substitutability between central bank money and bank deposits is limited by the fact that, on bank balance sheets, deposits are matched against risky assets (bank loans). [20] Ferrari, M.M., Mehl, A. and Stracca, L. (2020), “  Central bank digital currency in an open economy”, Working Paper Series, No 2488, ECB, November.
No one wants to see a return to the loose lending standards that prevailed in the run-up to the crisis, but households and the economy will benefit if we can foster sustainable homeownership with an increase in responsible lending. The Federal Reserve, in coordination with other agencies, has recently published two notices of proposed rulemaking that will affect the provision of mortgage credit.