That was typically shown in the current decline in lending of financial institutions in the United States and Europe. Third, it cannot be denied that somewhat slow responses by the policy and supervisory authorities in the United States and Europe to the generation of the credit bubble preceding the crisis also eventually amplified the current crisis.
One reason for that was the difficulty the policy authorities and supervisory authorities had faced in identifying the location and the size of risks, due to the expansion of the so-called shadow banking by insurance firms, monoline companies, and hedge funds. That was one of the factors behind the recent review of regulatory and supervisory systems overseas.