Second, for a resilient banking system the regulatory framework needs to be strong. Supervisors can only identify risks in banks, and act to mitigate them, if the legislator gives them the competence to do so. 8 / 10  BIS central bankers' speeches  Supervisors need the right tools and powers.
The financial sector, having made great strides in reducing non-performing loans (NPLs), seems better prepared to provide innovative services, going forward beyond this April when the blanket protection of deposits is removed. In a nutshell, Japan’s economy has virtually regained health that it lost a decade and a half ago.