The western household balance sheets are substantially large. But the recent crisis has brought about serious change in asset valuations. As the assets devalue and there is a corresponding impairment in the equity or debt side of the balance sheet. If asset devaluation reduces your loans then balance sheet quality remains unaffected.
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Impairing household balance sheets
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The western household balance sheets are substantially large. But the recent crisis has brought about serious change in asset valuations. As the assets devalue and there is a corresponding impairment in the equity or debt side of the balance sheet. If asset devaluation reduces your loans then balance sheet quality remains unaffected.