11As a caveat, it is important to acknowledge that CEA might to some degree be inﬂuenced by
developments from the demand rather than the supply side of the credit market. But whatever its ﬂaws in this
regard, indexes of this sort seem to be gaining increasing acceptance as the best available measures of credit
supply (as distinguished from credit demand).
The CEA index correlates strongly with measures ﬁnancial reforms of Abiad, Detragiache, and Tressel (2010), and measures of banking deregulation of Demyanyk, Ostergaard, and Sørensen (2007) (see panel A of their Figure 1, p. 2786 and Appendix 1).