## Figure 2.6. The Riskiness of Credit Allocation Rises When a Credit Expansion Is Stronger

## Source details

**Canonical URL:** [Figure 2.6. The Riskiness of Credit Allocation Rises When a Credit Expansion Is Stronger](https://www.imf.org/-/media/files/publications/gfsr/2018/april/chapter-2/pdf/figure2-6.pdf)

## Other formats

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### Summary of the figure
- The figure reports the range of impact of a contemporaneous increase in the change in the credit-to-GDP ratio by one standard deviation on four measures of the riskiness of credit allocation: leverage-, interest coverage ratio–, debt overhang–, and expected default frequency–based measures.
- The chart presents results for three groups: All economies, Advanced economies, and Emerging market economies.
- Vertical axis tick values shown in the figure: 0.00, 0.20, 0.05, 0.10, 0.15, 0.25, 0.30.

### Key findings (as presented)
- A contemporaneous increase in the change in the credit-to-GDP ratio by one standard deviation is associated with a rise in the riskiness of credit allocation across the measured groups.
- Statistical-significance coding in the figure:
  - Dark-colored bars indicate that the effects are statistically significant at the 10 percent level or higher for four measures out of four.
  - Light-colored bars indicate that the effects are statistically significant at the 10 percent level or higher for three measures out of four.

### Methodological note
- Sources: Worldscope; and IMF staff estimates.
- Note: See Annex 2.2 for details on methodology.

*Source: Figure 2.6 from the provided IMF content unit.*

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_Source: https://www.imf.org/-/media/files/publications/gfsr/2018/april/chapter-2/pdf/figure2-6.pdf_