At the same time, the process of financial integration may entail certain risks to monetary and financial stability, such as increased vulnerability of domestic financial systems to external shocks and intense competition that may lead to an erosion of credit standards. So while we strongly support further integration in mortgage markets, we are also of the view that this process should be carefully monitored.
That said, full integration of mortgage markets is a process that is likely to take many years and will largely be driven by market forces [see slide 22]. We believe that market participants’ actions will help achieve significant further progress. For example, they can increase market transparency, improve statistics, promote standardised mortgage products and develop market benchmarks.