The model has been specified as follows: Ln (AGDP) = 10.52 + 0.22Ln (Acredit(–1)) (22.89)* (5.61)* Adj R2 = 0.91 DW = 1.52 Where, AGDP = GDP from agriculture and allied activities at constant prices Acredit = Credit for agriculture and allied activities deflated by GDP deflator with one year lag * Significance at 1 per cent level of significance Though the unit root test revealed that both series were integrated of order 1, we did not adopt the conventional Box-Jenkins methodology of differencing the series in order to present the elasticity estimates.
Even before we began this exercise, banks started cleaning up their balance sheets and building capital buffers. I am confident that these and further measures will result in a more stable euro area banking sector that is willing and able to extend credit to the private sector for productive investment. Thank you very much for your attention. BIS central bankers’ speeches  5