There are two challenges. One is the NPL problem. The outstanding balance of NPLs has not shown any marked decrease and new NPLs continue to emerge at a high rate. The other relates to the profitability of financial institutions or, more broadly, to financial system infrastructure and markets.
These two challenges are mutually related and we need to tackle them simultaneously in order to restore financial system credibility both at home and abroad and to regain strength. Recent developments of the non-performing loan problem I would like to start with the NPL problem.