Third, it is important to note that in 2013, LTI ratios at or below 3.5 were the norm and comprised around 83 per cent of new lending. Similarly, lending at LTVs greater than 90 per cent was circa 15 per cent of all new lending in 2013.
They need to establish a strong risk culture, set up adequate risk governance and integrate it into their overall structure. And finally, all banks have to adapt to more stringent rules. It is true that they come at a cost, but in the long run, their benefits are greater. Society benefits in any case, but so do the banks.