On one hand, because of higher exposure both to those sectors more closely linked to the business cycle and to individual debtors who, faced with a deterioration of macroeconomic conditions could be severely affected. On the other hand, because of the higher relative growth of rollover consumer credit (i.e., credit cards and credit lines). This, because of the possible underestimation of the risk that these products may cause, as they allow for sharp increases in borrowing that may affect repayment ability without a timely reflection in the borrower’s payment behavior. Finally, and as has been noted before, the greater reliance of some midsized banks to wholesale funding makes them more vulnerable to episodes of greater difficulties in bank lending. As already noted, the present scenario depicts significant risks that call for policy responses in different directions. The MPR is within the range of values considered neutral. However, from the policy makers’ perspective, the task of dealing with the challenges posed by this type of risks goes beyond the scope of monetary policy, and requires the concurrence and coordination of a broader set of macroeconomic and financial policies. Actually, some of these risks (e.g., those relating to the current account deficit and the just mentioned real estate sector) can be observed even in a situation where inflation remains bounded and in line with the target. At the international level, we have seen growing interest in the use of macroprudential measures.
Table 3 Growth in housing prices (1) (real annual growth, percentage) 2002-2007  2009-2T2012  Nation-wide total (2)  3.1  5.7  Average of districts with significant increases (3)  1.6  8.3  (1) Averaged y-o-y growth between first quarter of initial year and last quarter of final year in each case. (2) Obtained using stratified method. (3) Average of districts with structural growth breakdown, according to methodology of Ferreira and Gyourko (2011). Source: Central Bank of Chile based on Internal Revenue Service (SII) data. BIS central bankers’ speeches  11  Figure 6 Housing sales by building phase (percentage of total) 100  100  80  80  60  60  40  40  20  20  0  0 08  09 Completed  10 Finishes  11  12  Structural work  Other unfinished  Source: Cámara Chilena de la Construcción. Figure 7 Mortgage debt to collateral ratio (*) (percentage) 90  90  85  85  80  80  75  75  70  70  65  65 07  08  09  10  11  12  (*) Preliminary figures of new operations approved in respective quarter. Source: Superintendence of Banks & Financial Institutions (SBIF).