A second report covering the use of certain types of credit limits, from a prudential point of view,is at an early stage of development.
This would take under consideration policy tools including Mortgage Insurance Guarantees and Loan-to-Value (LTV) limits, as well as potentially fixing all
interest rates for certain products such as mortgages. It would also consider the use of some
portfolio/concentration restrictions on high-risk property lending. Due to low levels of lending at present, the urgency for completion of this report is reduced. The credit team intends to present a discussion document before the end of the year, outlining a wide range of policy options and assessing the associated benefits and disadvantages. The Financial Stability committee would then be able to decide on the key priorities for further research, with conclusions and recommendations for implementation to be agreed by the end of Q1 2012.