OECD warns of finance downside on growth

Tokyo

FINANCE and credit are essential for economic growth, but too much of it - provided through the wrong channels - can actually reduce growth and add to income inequalities, the Organisation for Economic Co-operation and Development said on Wednesday.

Its controversial report suggested that economies can become more crisis-prone with an over-rapid growth in credit, especially when associated with a rapid build-up in household debt and with over-leveraging by the corporate sector.

It pointed to the build up…