in persuasion, and wolf, martin ( 2007 ) : “ life could yet follow death for the idea of securitisation ”, financial times, 3 october 2007. contagion occurred because a substantial share of norwegian banks obtain financing abroad. the eurodollar market has been a frequently used source of financing for norwegian banks. this is both because norwegian banks have substantial dollar lending and because this market is used as a source of nok, i. e. banks borrow in dollars and then swap them for nok. in the early 1990s, a market was established for pure krone liquidity, called the nidr ( norwegian interbank deposit rate ) market, but this market has few participants and low liquidity. since the beginning of august, the eurodollar market has not functioned well. this has affected the norwegian money market. the difference between the money market rate and the expected key policy rate has widened considerably, although less than in major markets abroad. this has resulted in a rise in banks ’ borrowing costs – at least for a period. this might have an impact on banks ’ profitability. turnover time for deposits and loans in the interbank market has also increased and loan terms have decreased. norwegian banks and mortgage companies are now also entitled to issue mortgage - backed bonds. the rules for covered bonds entered into force on 1 june 2007. norwegian covered bonds are very different from us cdos backed by subprime mortgages. the regulations ensure that norwegian covered bonds are a more transparent and substantially more secure investment alternative. norwegian mortgages have a maximum loan - to - value ratio of 75 per cent. in addition, all holders of covered bonds have the same claim over the cover pool. a number of conclusions can be drawn from the turmoil in credit and money markets. problems in markets far beyond norway ’ s borders may have an impact on norwegian banks even if the banks are not directly involved. as a result of the globalisation of financial markets and new and complex instruments, turbulence spreads quickly. banks extend long - term loans. they should therefore be cautious about basing borrowing growth on short - term financing. they should ensure access to a solid local deposit base or long - term bond issues for any expansion. when times are good, it may be difficult to perceive and assess risk. new products that are dependent on favourable economic developments are not viable. new products must be robust to slowdowns and unforeseen events. the housing market in norway and the financial position of

is that japan's economy is expanding moderately, with a virtuous cycle from income to spending operating. in fiscal 2017 to date, the bank has revised its economic 1 / 6 bis central bankers'speeches assessment upward twice. these revisions are based on its judgment that a positive output gap has taken hold, as evidenced by the fact that industrial production has been on an increasing trend, reflecting the increases in demand both at home and abroad, and that labor market conditions have continued to tighten steadily. on the domestic demand side, business fixed investment has been on a moderate increasing trend, with corporate profits and business sentiment improving and across a wider range of industries. according to the june 2017 tankan ( short - term economic survey of enterprises in japan ), business plans for fiscal 2017, especially those of large enterprises, showed firms'solid stance. this is evidenced by, for example, the fact that fixed investment on a basis close to gdp definition saw a year - on - year increase of 5. 9 percent - - a level clearly exceeding the past average of 4. 3 percent for the june tankan surveys during the period of fiscal 2004 - 2016. private consumption has increased its resilience against the background of steady improvement in the employment and income situation, and housing investment has been more or less flat. exports have been on an increasing trend against the backdrop of developments in overseas economies that i mentioned earlier. on the price front, the year - on - year rate of change in the consumer price index ( cpi ) for all items less fresh food is in the range of 0. 0 - 0. 5 percent. 2. outlook i will now look at the outlook for japan's economy during the projection period, which covers from fiscal 2017 through fiscal 2019. the economy is likely to continue its moderate expansion. domestic demand is likely to follow an uptrend on the back of highly accommodative financial conditions and fiscal spending through the government's large - scale stimulus measures. exports are expected to continue their moderate increasing trend along with the improvement in overseas economies. reflecting this outlook, japan's economy is likely to maintain growth at a pace above its potential mainly through fiscal 2018. in fiscal 2019, it is expected to continue expanding, although the growth pace is projected to decelerate due to a cyclical slowdown in business fixed investment and the effects of the scheduled consumption tax hike. looking at the medians of the policy board members'forecasts in the july 2017 outlook report