Three factors lie behind these nonlinearities: •  Composition of credit: While there is a positive and significant relationship between enterprise credit and GDP per capita growth, empirical evidence shows an insignificant relationship between household credit and growth (Beck, Büyükkarabacak, Rioja and Valev 2012). In most high-income countries, household credit has grown persistently over the past 20 years.
An appropriate resolution framework will be developed in consultation with reputable independent advisers, and the market will have information on steps being taken at appropriate junctions in the process. We reiterate that, based on the totality of information available to the regulator, there is no basis for suggesting that the system is at risk.