In addition, the business cycles of the new entrants to global trading tend to be less closely in phase with cycles in already industrialized economies and, as a result, may have a damping effect on balance--although this effect might be expected to dissipate gradually as global integration proceeds. Perhaps the most consequential development for monetary policy was the shift to more-flexible exchange rates.
Our goal is to bring the banking industry’s NPA/NPL ratio to single-digit level. As of end-June 2005, the rural banking industry’s NPA/NPL ratios stood at 11.9 and 14.7 percent, respectively. This is still double the pre-crisis period since the sale of NPAs under the SPV Law only created a small dent on the inventory of acquired assets arising from soured loans.