| 'Realty prices may pose risk to banking system' |
| BS Reporter / Mumbai December 04, 2007 |
| The strong demand for housing and home finance in India are likely to maintain pressure on the real estate prices (read high property prices). The elevated prices along non transparency may lead asset bubble" in the market and pose risk to banking system, according to Rakesh Mohan, deputy governor, Reserve Bank of India. The demand for housing finance has emerged as a key driver of bank credit in the past few years. As incomes grow further and the pace of urbanisation picks up, and, in view of the substantial backlog, demand for housing and housing finance can be expected to record continuous high growth over the next few years, Mohan said while talking on India |
