Claims on corporate borrowers jumped to over 300 per cent of GDP by 2007, while claims on households also jumped, but to the more moderate level of just over 100 per cent of GDP (Annual growth rate of corporate lending reached the startling figure of over 60 per cent at one stage, whereas for household debt it was only a bit less dramatic, peaking at about 30 per cent – IMF Staff report August 2008).
Often, the rules adopted immediately after the financial crisis applied a one-size-fits-all approach framed around the largest banks whose activities presented the most significant risks. This approach ignores the importance of bank size and business model.