11  Examples from this literature are Heller (1991), Prudential supervision and monetary policy, in Frenkel, J., and M. Goldstein (eds. ), Essays in honor of Jacques J. Polak, International Monetary Fund; C. Goodhart and D. Schoenmaker (1992), Institutional Separation Between Supervisory and Monetary Agencies, Giorn. Econ.
In the past year or so, banks were unwilling to provide automobile loans because of the high NPL ratio that occurred as a result of car price drop. Now that the individual credit information database is established and contains information of every loan borrowed by an individual, default on one loan will affect future borrowing.