While the slowdown in the pace of growth itself in emerging and commodity-exporting economies, which have been somewhat overheating, is desirable in achieving sustainable growth with price stability, inflationary pressure in those economies is yet to be contained.
This posed a challenge to risk modeling as present values depend in a complex way on market factors like interest rates or exchange rates. Therefore, it is not surprising that the growth of credit trade was accompanied by rapid technological progress, for instance, by the development of new credit portfolio models.