In the context of the concern about housing costs, there have been calls for restrictions on credit growth. There is no authority to impose restrictions as we might wish. The Central Bank contribution is to ensure that the lending institutions have made good provisions for the rainy day.
In the past year the Bank has put emphasis on stress testing and we have advised the banks repeatedly to pay strict attention to risk management. We remain uneasy about the continuing upward spiral in property prices; apart from other considerations, this generates an inflation mentality. The recent initiatives on housing taken by Government are to be welcomed.