theme in this report in recent years. But prices fell or stalled in 2018 in Melbourne, Stockholm, Sydney, Toronto and Vancouver due to government actions to reduce foreign purchases, macro-prudential measures and/or stretched affordability. Fitch Ratings forecasts home prices to fall in Australia and Sweden in 2019 before stabilising in 2020, modest corrections in China and South Korea, and stalled growth in Canada. We have also seen regulators actively managing markets through the tightening and loosening of lending rules.

Argentina’s banking sector remains underdeveloped and highly concentrated in the capital city and province of Buenos Aires. Credit penetration in the country as a whole, as measured by the ratio of total loans to GDP, is, at 16% at end-2017, among the lowest in the world. The banking sector features a medium level of concentration, marked by the dominance of local players, particularly public banks controlled by the federal or state governments. However, it has an atomised structure, given that the top 20 banks accounted for 91.1% of total assets as of February 2018, with the remaining 8.9% distributed among 42 small and medium-sized banks.

The highly attractive and prospective Indonesian tourism sector has attracted both domestic and international hotel groups. The market structure of the tourism sector is highly competitive, especially in areas such as Bali and Jakarta, where the majority of visits with tourism purposes are concentrated. These two islands attracted a large influx of investment, leading to excess supply. There were 2,387 classified hotels operating in Indonesia as of end-2016, according to the latest available data. Nearly 40% of the hotels are based on Java and 13% on the resort island of Bali. That is mainly explained by the poor infrastructure outside of Java and Bali.