India’s credit-to-GDP gap has been estimated at (-3.2) whereas that of China was 29.7 and Brazil 8.5, said BIS report. Based on certain indicators, BIS noted that they suggest “heightened risk of banking distress in a number of emerging market economies”. “This is in particular the case for Brazil, China and Turkey where the credit-to-GDP gaps are close to or above 10%. Debt service ratio of India was 1.8 compared to 5.5 for China and 7.4 for Brazil, as per the report. According to the BIS note, in the same scenario, the figure is 8.8 for China, 9.2 for Brazil and 7.4 for Turkey.

Source: Mint August 21, 2016 06:56 UTC