To date, the reforms have vastly improved the conditions and outlook of the financial sector landscape of the country. In the banking sector, there is marked improvements in asset quality with nonperformining loans as a percent of total assets declining from 2.3 percent in 2000 to 1.4 percent in September 2005.
The process of choosing the appropriate creditor also changes noticeably during the business cycle. When the risk-free rate and/or bank profits decline, corporations with the requisite conditions resort to the debt market to find finance, rather than going to the financial system.