BIS Review 105/1998  –4–  A more in-depth view is probably needed here, too – in particular as it is difficult to identify a credit crunch in a clear-cut manner. It is not possible to identify whether a decline in lending is due to a restraint in supply or to slack demand.
The recently found compromise between the US Commodity Futures Trading Commission (CFTC) and the European Commission on cross-border derivatives business should be seen as part of this regulatory convergence process. It is proof that, in the regulation of derivatives, policymakers around the globe are pulling together. Worldwide, only a small percentage of OTC derivatives are at present settled via central clearing.