In this assessment, we take account of the cost incurred should risks materialize, even though the probability of this happening may be low. In this regard, both upside and downside risks need to be borne in mind.
In addition, such declines reflect the ongoing tightening of lending standards that can result from the deterioration of the fundamentals that support lending. Turning to commercial mortgage growth, figure 6 presents such data from the 1950s through 2008.