Up to the 1980s, the various controls on the financial sector meant that the ability of households to obtain credit was constrained. Even obtaining a housing loan was relatively difficult. However, after financial regulations were eased around the globe, many new financial products were developed specifically for households, and particularly relating to housing finance. Households found it was much easier to get a loan.
The introduction of an output floor for the requirements calculated using internal models and the new rules on market risks approved at the beginning of this year to rebalance the relative weight of credit and market risks in the capital requirements (Fundamental Review of the Trading Book – FRTB) will be of critical importance.