of below - normal credit growth. a primary objective is to increase the resilience of banks to unexpected reversals in credit dynamics ; in addition, depending on circumstances, it is possible that the credit cycle might also be dampened by such counter - cyclical measures. while new lending is picking up, our assessment is that the credit cycle remains subdued, which is reflected in the current zero value for the counter - cyclical capital buffer. still, since the counter - cyclical capital buffer is reviewed on a quarterly basis, this policy tool provides a highfrequency ( compared to the typical duration of financial cycles ) mechanism to respond to cyclical shifts in credit conditions. a small but increasing number of eu countries have raised the counter - cyclical capital buffer in recent times. of course, the bedrock of our macroprudential policy framework is formed by the borrowerbased measures we have introduced in relation to mortgage loans. we view our mortgage measures that put ceilings on loan - to - income ( lti ) and loan - to - value ( ltv ) ratios as essential in limiting systemic financial risk emanating from the mortgage market, while acting to protect consumers from the risks associated with overborrowing. such borrower - based measures are intended to improve the resilience of the financial system and the overall economy by improving the sustainability of mortgage loans, leading to a lower probability of default and smaller losses in the event of defaults. moreover, such measures are reinforced by the higher capital requirements facing banks, which improves their capacity to absorb loan losses. an important property of the mortgage measures is that the lti rule acts as an automatic stabiliser in relation to house price dynamics : house prices cannot persistently rise faster than the income levels among the pool of potential purchasers. in addition, the differential ltv ratios for first - time and second - and - subsequent buyers recognises the asymmetric impact of house price increases on these different groups : whereas a rise in house prices requires extra savings to meet the deposit requirement for a first - time buyer, an incumbent house owner experiences a decline in the ltv ratio on her existing property which expands her borrowing capacity in further 2 / 5 bis central bankers'speeches housing market transactions. in similar vein, the additional ltv requirement for buy - to - let ( btl ) investors limits the feedback loop between house price rises and the conversion of increases in home equity values into borrowing capacity in the btl category.

missteps which inevitably accompanied the initial design of the programme of assistance, it worked out to bis central bankers ’ speeches deliver, as i have said on a previous occasion, what it said on the tin : restoring market confidence and stabilising not only the public finances but also the economy. the rest is up to us, the irish policy makers and the irish people, to complete the recovery of the economy – which has been on a persistent growth path both in terms of output and employment for the past three years – and to rebuild the economic aspects of irish society in a way which fully resonates with our shared vision and goals. it is often observed these days that key among the characteristics needed to prosper in what seems to be a rapidly changing and increasingly unpredictable global economic environment are resilience and the adaptability to take advantage of new opportunities and trends. i believe that irish resilience has been fully demonstrated in the way in which the economy has been recovering from the disaster that struck in 2008. ireland ’ s adaptability and openness to the opportunities that emerge in the world have been well demonstrated in the rapid and firmly founded growth of the mid - to late - 1990s – the true “ celtic tiger ” period. that is why i believe there are solid reasons for optimism about the future, building on the platform of restored financial stability which the eu - imf programme helped us rebuild. bis central bankers ’ speeches