Clear and fully transparent transactions with customers help to strengthen the trust placed in banks, the ingredient on which their business hinges. These principles should be in place even when contract conditions change, which is only possible for a valid reason; customers should be properly informed of these in order to make reasoned choices.
But as long as banks are unwilling to lend, and demand remains subdued, the recovery cannot happen. The recent stress-tests conducted on US banks indicated that while banks still remain under pressure and some require further recapitalisation, the worst of the bad news may be behind us.