The model assumes that deviation from the trend is cyclical and hence should trigger build up (or release) of buffers. While this model could work for advanced economies, it may not work effectively for emerging market economies like India since, in our context, the deviation in the “credit to GDP” ratio may not only be cyclical but may have large structural components.
It is growing at an impressive rate, with shoots popping up all over the pla net. Only yesterday two new members and an observer joined us. A warm welcome to The Swiss National Bank, Swiss supervisory authority and the European Investment Bank. Today, the NGFS has thirty six members and six observers. Our membership spans five continents. One planet.