The bursting of that bubble induced a financial crisis and an economic plunge following the failure of Lehman Brothers. Households have had to continue reducing borrowing to repair their balance sheets, which weakened due to a decline in home prices. Financial institutions have also been pressed to dispose of a large amount of impaired assets and become cautious about new lending.
The European Systemic Risk Board and the Asian+3 Macroeconomic Research Office with a Chinese official as a first head of this office will play a significant role on the regional level.