How do we prioritize these issues for improving risk-based supervision? How do we revise those priorities when underlying economic conditions evolve or banks begin to engage in new activities that present new risks? We will need to be sure that whatever approach we adopt, we devote sufficient supervisory attention to the areas of highest risk, while not hindering innovation.
In hard-to-distance services—things like restaurants and hotels—we are also starting to see some slowing of growth. Softening is likely to continue further because the boost in growth that this sector experienced after the reopening of the economy is now mostly behind us. Overall, we are seeing some signs that demand is slowing but we’re still in excess demand.