Yet, as high intensity events starting with the taper tantrum have shown, macroeconomic fundamentals do not matter in the face of these large and sudden movements of capital, and their economies remain vulnerable to rapid materialization of risks. 14. So far, our quest for a robust, equitable and quickly deployable global financial safety net (GFSN) has remained elusive.
Intuitively, the availability of credit information would imply a more efficient allocation of credit at lower interest rates accompanied by higher economic growth and a less lop sided income distribution. With increasing coverage, which would ultimately subsume the entire population of loans data, the information from CICs may, in future, support both on and offsite supervision.