In addition, the Board published estimated loss rates for groups of loans with distinct characteristics, to show how supervisory models treat specific assets under stress. We will publish disclosures about two additional models in 2020 and each year thereafter until we have provided transparency about all our stress test models.
A large deficit will force an increased demand from the private sector for more bank credit to replace what Government is withdrawing from the savings pool. More bank credit, however, creates more money and increases the risk of higher inflation in future.