Strengthening the financial infrastructure The potential vulnerability of the financial system to the collapse of Bear Stearns was exacerbated by weaknesses in the infrastructure of financial markets, notably in the markets for over-the-counter (OTC) derivatives and in short-term funding markets. The Federal Reserve, together with other regulators and the private sector, is engaged in a broad effort to strengthen the financial infrastructure.
Greece is now facing three stock imbalances, namely a high rate of unemployment, a high public debt and a high stock of NPLs in bank portfolios. These three crisis legacies, coupled with the significant investment requirements in order to improve the economy and modernize its public and private infrastructure, will remain the major challenges for Greece over the coming years.