24 As lenders can ease or amplify an economic crisis, their resilience is central to minimise potential scarring. Through the steps taken in recent years, the domestic banks are now more resilient today than they were in the past. The capital requirements imposed on banks have ensured that they are better prepared for economic shocks such as the one we now face.
In addition, the lending practices of the domestic banks have been more prudent in recent years than in the run-up to the nancial crisis and they are also able to rely on capital buffers to absorb losses and continue to lend to the economy.