which will be presented here will analyse the role of income, home ownership and house price dynamics, household structure and intergenerational transfers in this process of wealth accumulation. i hope the exchange of ideas that will take place in the next two days will help us to further our understanding of how households manage their finances in a complex and uncertain world, to draw useful policy lessons and prepare for the next waves of the survey. and i hope this conference will spur research in this exciting field, from which we all, researchers and policy - makers alike, have so much to learn. thank you very much for your attention. eurosystem household finance and consumption network ( 2013 ), “ the eurosystem household finance and consumption survey. results from the first wave ”, statistical paper series, no 2, april. bis central bankers ’ speeches

of money held by households and companies, remained strong. this growth in money was accompanied by robust lending on the part of banks. although the rate of growth of mortgage loans to households has declined since mid - 2012, it is still at a high level. most recently, mortgage lending to companies, in particular in residential construction, has increased significantly. overall, lending has been growing faster than nominal gdp for several years. in addition, prices for owner - occupied apartments and single - family homes have risen strongly in the past few years. given the sustained period of exceptionally low interest rates, there is a risk that the imbalances on the mortgage and real estate markets will increase further. this development jeopardises financial stability and, in the event of an abrupt correction, can have wide - reaching consequences for the real economy. snb monetary policy ladies and gentlemen, the snb continues to face major challenges. in particular, the threat that the swiss franc could suddenly come under upward pressure again has not been averted. in the current low interest rate environment, therefore, the minimum exchange rate remains the focal instrument for ensuring appropriate monetary conditions. the financial crisis has shown that for balanced economic development more than just price stability is required ; financial stability must also be guaranteed. in switzerland, the fact that the snb is required to contribute to ensuring financial stability was already laid down in the national bank act of 2004. our annual financial stability report is an important instrument in this respect. it draws attention to emerging imbalances and the existence of risks which, in our view, could jeopardise the stability of the banking industry as a whole in the medium term. in addition, last year a new instrument was created – the countercyclical capital buffer – based on the lessons drawn from the financial crisis. at the beginning of the year, the snb proposed that this buffer be activated, and the federal council decided in favour of an activation in february. the countercyclical capital buffer will come into effect from the end of september 2013 and will strengthen the resilience of the banking industry. moreover, it will help to counter a further build - up of imbalances on the mortgage and real estate markets. my colleague, jean - pierre danthine, will now give you our assessment of the risks in the financial sector. bis central bankers ’ speeches