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Revival depends on restoring a suitable level of credit availability.
Strict restrictions will be in force governing issues such as the level of credit a bankrupt can obtain.
Most banks, too, should be able to move smoothly to a more sustainable level of credit origination.
Rather than regulate institution by institution, as at present, the authorities need to watch the overall level of credit creation and leverage.
If the customer has a clean credit history and looks to be a prompt payer then your credit control team will make a decision on the level of credit provided and suitable payment terms.
"Everyone is trying to kitchen-sink this thing, but it's hard to do so without knowing the ultimate level of credit losses," said Josh Rosner, a managing director of Graham Fisher, an independent consulting firm in New York.
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However, these results contradict with the findings of Aghion et al. (2004) who found an insignificant direct impact of financial development on economic growth and further concluded that the level of credits as a percentage of GDP influences growth only in the intermediary stages of development.
Clearly, keeping interest rates at the near zero level does not necessarily lead to higher levels of credit or investment.
This will weigh on the ratings of stock prices in individual countries as domestic discount rates diverge because of differing levels of credit risk.
They recognise that there's a link between higher levels of growth and higher levels of credit and debt in the economy.
The rise is partly due to a collapse in bookings last winter because of fears of flying post-11 September, but it also underlines the growing consumer spending boom that has prompted record levels of credit card debt.
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