Although steady progress has been made, there still remains a fairly long way to go before we feel  4  BIS Review 46/2003  confident that the NPL problem is fully resolved. The complete removal of blanket deposit insurance is still being postponed. Market-based credit intermediation, which can function as a substitute or complement for bank lending, has not yet fully developed.
The third issue is to redesign various systems so that they adapt to the needs of a new age. In particular, it is an urgent task for Japan to reform various systems, including the social security systems, the national tax system, and the relationship between the central government and local governments. Redesigning these systems tends to raise the conflict of interest problem among generations.