Tuesday, January 11, 2011

Global credit gaUge

The FT.com reports on international measures to increase required capital ratios if credit growth breaches a threashold.
"The agreement drew strong support from around the world despite predictions that regulators would be unable to come up with a common definition for bubbles. The deal uses the ratio of credit-to-GDP as its basic measure. But regulators can use other metrics, provided they make their reasoning public"