The Credit Impulse in 2022

In Q4 2020, the credit impulse was the highest in 20 years. The government with fiscal transfer inject money in the private sector. So banks basically had a free lunch. And capital markets were wide open in 2021. 9 to 12 months later, earnings per share followed. You don't hear increase in earnings per share in 2021. A bit later, as normally in the cycle, inflation starts to pick up and supply bottlenecks help. But the credit impulse started dropping somewhere mid sorry, end of 2021, beginning of 2022. Since then on a rate of change basis, it has come down really, really aggressively.

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