Credit expansion must now be followed by a period of contraction, because some of the new credit instruments and practices are unsound and unsustainable.

During this period, credit expanded rapidly as a share of GDP, reaching more than 300 at the peak.

Rating agencies would consider this debt exchange a credit event, but only for a very short period a matter of a few weeks.

Credit Where Credit is Due

In January 2010, despite strict administrative control of financial credit lines (the PBC actually imposed credit ceilings on commercial banks), bank lending grew at an annual rate of 29 , on top of already strong expansion in the same period a year earlier.

Especially, the Bank has increased the credit ceiling from VND 3 million to VND 7 million and extended maturity period from 30 months to 60 months.

Credit

Credit

But the prolonged period of low interest rates that followed the 2001 recession instead contributed to the emergence of another bubble, this time in real estate and credit.

Furthermore, tighter credit standards over a prolonged period are likely to fall disproportionately on cash poor, fast growing companies, with consequences for innovation, productivity, and ultimately growth potential.

One of the goals of the National Plan on Policies for Women is to grant credit to 400,000 rural women workers, over the period of 2005 and 2006.

Both seem set for a long period of slow credit growth, owing both to necessary stricter financial regulation and to the fact that their economies remain significantly over leveraged.

Unfreezing Credit

Photo Credit

Rural Credit

Financial Credit

This way public credit registries and credit bureaux may be able to operate and provide adequate and up to date electronic credit information.

Banks and credit card companies have become much more cautious about extending credit.

Credit histories cannot be shared, because a credit bureau is just getting started.

The supply of credit, in other words, resulted from the demand for credit.

China s Credit Overdose

Picture credit Redbelt

Photo credit Hussain

Photo credit Nzingha

Photo credit Sietske

Picture credit Butterfly

Credit stopped flowing.

Picture Credit Intlxpatr

Credit Nathaniel Janowitz.

Credit Katie Paterson

Credit Jorge Valencia.

Credit Jorge Valencia.

Credit Jorge Valencia.

Credit Rebecca Collard

Credit Rebecca Collard

Credit Jan Birck

Credit Jan Birck

Credit Daniel Estrin.

Credit Daniel Estrin.

Credit Daniel Estrin.

Credit Jason Strother

Credit Jane Arraf

Credit Hussain Manawer

Credit Artist MsSaffaa

Banking and credit