So to make sense of what has been happening, it is necessary to think in terms of capital flows being driven by changes in the perceived returns in the different countries. In the remainder of this talk, I would like to examine this apparent shift in capital flows, and to think about whether it is temporary or permanent.
In addition, it should also be considered that while the annual rate of growth of loans to the private sector continued to decline until March, there are also early indications that this decline may be coming to an end. Overall, the information from the first pillar therefore continues to deserve particular attention.