Right panel shows the response of housing investment to a n increase of 100 basis points in mortgage rates sustained over the projection horizon. Spread increases are simulated under exogenous monetary policy.
According to the Memorandum, the other banks will have to raise private capital by the end of April 2013. If they fail to do so, the Bank of Greece will activate the steps envisaged in the resolution framework, at the latest by June 2013, in a manner that will safeguard financial stability.