"For the vast majority of household borrowers, financial buffers remain broadly intact. However, banks remain resilient against risks from the household sector even under scenarios of assumed higher unemployment and underemployment affecting more household borrowers," it said. Other household financial stability indicators do not suggest higher risks so far given stable household financial asset-to-debt ratios and high excess savings," she told The Edge. This will in turn reduce consumption and curtail economic growth later," he said. And if such high household debt levels persist, they may result in an unhealthy financial system that is fragile to future economic disruptions.

Source: The Edge Markets April 01, 2021 01:07 UTC