It is clear that many lenders have been slow to acknowledge the extent of this problem and to put in place sufficient operational infrastructure to deal with it. Nevertheless it is a task from which the lenders should not be relieved. Neither the lender nor the borrower is wellserved by delay in recognising the existence of an inability to service debt.
Despite its severity – indeed because of its severity – this problem can be adequately dealt with only on a case-by-case basis taking account of the borrower’s particular circumstances. Banks must put the framework and resources in place to examine the individual cases of distressed borrowers. The sooner they do this the better.