business credit further expansion slows rather than boosts growth. Causality from more credit to slower growth is supported by … exogenous variation in financial size. The empirical analyses point to five factors that link more credit to slower growth: i …) excessive financial deregulation, ii) a more pronounced increase in credit issuance by banks than other intermediaries, iii) too …

-skilled, individuals with unstable employment paths and financially vulnerable households. Strong bank supervision and macroprudential … measures that aim to avoid credit overexpansion are two policies that can improve the links of private debt with labour income …