The FSB has completed considerable work in this area, which mounted in FSB Principles on Sound Residential Mortgage Underwriting Practices. The question about the other and perhaps even more important part of the real estate lending business will be dealt with in this workshop: Could excessive risks from commercial real estate financing negatively affect financial stability?
(slide) The global stock of commercial real estate is estimated at 31.2 trillion U.S. dollars as of 2011. About two thirds of global total stock is considered to be investable. The majority of investable stock is already invested and accounts for more than 12 trillion U.S. dollars. This part is in the primary focus of this workshop.