In parallel, however, banks need to adopt a more active NPL management policy, focusing on long-term solutions, multi-creditor workouts and restructuring of viable companies, with the participation of shareholders. During the protracted period of the crisis, the private sector has paid a high toll.
There is a need for fair evaluation and strengthening of regulatory regimes, prudential oversight and risk management, and ensure that all financial markets, products and participants are regulated or subject to oversight, as appropriate to their circumstances.