In a situation where monetary policies were still concerned with the control of interest rates rather than credit flows and the quantity of money, floating rates ended up by fostering an increase in inflation in the industrial countries and in the rest of the world. Monetary growth in the leading industrial countries continued, at an annual rate of 13%.
For example, loan-value relationships limit credit risk, but under certain circumstances they can reduce the efficiency of the market in allocating resources, by introducing incentives in favor of, or to the detriment of, a certain sector. In a similar way, dynamic provisioning can overreact to information or premature trends and become a heavy burden for financial institutions.