With such easy access to foreign funding, internationally connected  BIS central bankers’ speeches  1  banks have time and again pumped-up the domestic property market or propped-up the finances of an overspending fiscal authority, creating extensive pockets of domestic overindebtedness whose deleveraging destabilises economic activity.
These credits, however, account for most of the group’s increase in nonperforming  BIS Review 37/2002  1  assets over the past year. Given the checkered history of commercial real estate lending and its increased relevance to many community banks, this portfolio must be monitored and managed carefully.