2/3  BIS central bankers' speeches  Third, by strengthening write-offs and disposal of bank non-performing loans (NPLs), we made efforts to solve the sustainability problem related to the support of the financial sector for the real economy. Under the impact of the pandemic, bank NPLs will edge up.
First, financial supervision has drawn widespread critique. The stereotype perception is that risk management and supervisory practices lagged behind financial innovations and emerging new business models. The present crisis underscores the need for regulation staying ahead of the curve, and for continually upgrading the skills and instruments for financial regulation and supervision. However, there is need for a note of caution here.