The analysis primarily looks into the interconnections that exists between different institutions in the financial system and tries to identify build up of systemic risk. Graphical network representations have been developed which are being used to assess the degree of system level interconnectedness and the stability of the system.
Overall, more firms than in recent surveys say they plan to boost investment spending over the next 12 months. Household spending has continued to support the economy, with employment and income continuing to grow outside of energy-intensive regions, particularly in service industries. The Bank’s accommodative monetary policy will continue to buffer the impact on wealth and income stemming from the fall in resource prices.