absorption with GDP on the product and income side
Summary (continued)
The model...and during the “sudden stop”
Households
Banking sector
Government
Solution of...
These risks also affect the resilience of a credit
institution’s business model...from less significant institutions:
1) expectations regarding their business...
• Put simply, YES
– Proposed model works best where bank credit
dominates (e.g....Other Series
• Real GDP, GDP Deflator, Commodity prices
– Defines basic macro...
lending (BoE)
Risk sharing credit schemes in place from 2010
Special lending model...rate on long-
term corporate loans (July 2013) 5,58
Government credit schemes -...
volattility implied by the market price of an option based on the Black-
Scholes model...n
ce
in
b
p
E
S
T
R
e
xp
e
ct
a
tio
n
s
difference (right) ESTR OIS...
Description of the signalling model ................................................excessive credit growth ..... 61
Appendix 5 — Gaps observed in the signalling...
