There is no room for complacency because the risks for financial stability remain high, also bearing in mind that the credit cycle had not yet reached a trough.
Banks, in particular, will therefore need to be especially careful in ensuring that they have sufficient capital and liquidity buffers to cushion the risks that lie ahead while providing an adequate flow of credit to the economy. Over the medium to longer term, banks should undertake the appropriate restructuring to strengthen their financial soundness and resilience to shocks.