The indirect impact on banks of adverse developments in GDP growth and the aforementioned risk factors on banks mainly consists of an increase in credit risk arising from the effect of such developments on the financial condition of households and enterprises and thus on their debt-servicing ability.
2 These enhanced CDS statistics will provide a better insight into the use of CDS across economic sectors allow the monitoring of the size and sector composition of credit risk transfer by financial intermediaries. Moreover, the new statistics will provide a better measure of cross-border credit risk transfer through a regional breakdown of counterparties.