Proposals to amend Basel I Of course, those of you here today have also been following discussions about possible changes-beyond Basel II--to the existing regulatory capital rules. First of all, we expect only one or two dozen banks to move to Basel II in the near term.
Our estimate is that currently, less than 5 per cent of indebted owner-occupier households have negative equity, and the vast bulk of these households continue to meet their mortgage obligations. One factor that has helped here is that the share of new loans with high loanto-valuation ratios (LVRs) has declined substantially (Graph 15).