Vice versa, banks that persistently fail to take measures against nonperforming debtors would not fulfill their function as intended, either. Overall, even if this ability of banks to share risks with the nonfinancial sectors were to be preserved, it can be expected to diminish. Capital markets are likely to gain in importance for corporate finance.
BoG has demonstrated this commitment by the bold steps it has taken so far, as difficult and painful as some of them have been. Q. Were the actions taken against the 7 defunct banks necessary? Why were they taken?