Last September, the G-10 Governors issued a Year 2000 advisory that included a paper prepared by the Basle Committee on Banking Supervision (Basle Supervisors) describing the serious nature of the problem, identifying the issues that must be addressed, and outlining how programs to address the issue should be structured.
Government policies adopted during the pandemic to support households and firms’ access to credit contributed to mitigating the impact on the quality of bank assets. Indeed, banks’ nonperforming loan ratio remained stable at historically low levels, and the gradual phasing out of the support measures, which is now being implemented in the context of the economic recovery, is occurring without tensions.