Even though there are variations across regions, the trend in house prices is the same – from a more moderate rise at the beginning 2007 to a clear decline at the beginning of 2008. Norges Bank’s lending survey for the third quarter shows that banks are tightening credit standards for households. Banks announced further tightening ahead. Owing to growing turmoil and liquidity shortages in financial markets, banks have raised their requirements with regard to collateral and borrowers’ debt-servicing capacity. Growth in household credit has slowed in recent months. House price developments affect building starts, which have decreased in the past year. The decline is sharpest for residential building starts. In October, enterprises in Norges Bank’s regional network indicated a very low level of housing starts in the period ahead. Order reserves for commercial buildings and holiday homes are high, however. Commercial construction is largely financed by loans, and may therefore be affected by changes in interest rate and credit conditions. Enterprises in Norges Bank’s regional network report that commercial building starts have declined in recent months. Household saving has picked up. Household income accounts show that the savings ratio excluding share dividends has risen, but is still very low and negative. Household borrowing requirements have also decreased somewhat. (Household net lending has picked up slightly.) The financial market crisis has led to higher borrowing costs for banks and has kept bank lending rates at a higher level than developments in the key rate would imply.

Ravi Menon: Allianz and Singapore – growing a specialist insurance hub in Asia Opening remarks by Mr Ravi Menon, Managing Director of the Monetary Authority of Singapore, at the launch of Allianz’ Regional Centre, Singapore, 18 September 2013. *  *  *  Mr Manuel Bauer Dr Dieter Wemmer Dr Maximilian Zimmerer Dr Christoph Mascher Distinguished guests, ladies and gentlemen, Good evening. I am pleased to join you this evening at the official opening of Allianz’s new regional centre in Asia Square. Allianz and Singapore This marks a major step forward for Allianz in Singapore and in Asia. For the first time, we will see Allianz’s 450 staff across 11 entities coming under one roof. This new centre will strengthen synergies across business units, enabling Allianz to better serve the needs of its 20 million customers in the region. In a way, Allianz’s story reflects Singapore’s own development as a specialist insurance market. Just ten years ago, the insurance industry in Singapore was focused on writing pure domestic risks. Singapore has now developed the capacity and expertise to underwrite large and complex risks across Asia. With the opening of Allianz’s new office here, Asia Square is also shaping up to be Singapore’s own version of London’s Leadenhall Street, where many prominent insurers and brokers are located. Such physical co-location will help to promote greater exchange of ideas and collaboration, and create an insurance marketplace that is committed to deliver customised and innovative solutions. Mitigating Asian risks The prospects for Asia’s insurance market are bright.