3  King, Robert. G. and R. Levine (1993), 'Finance and Growth: Schumpeter Might Be Right', The Quarterly Journal of Economics, August, 717-737. 2  BIS Review 23/2008  Levine and Zervos, 1998). 4 Even the recent endogenous growth literature, building on “learning by doing” processes, assigns a special role to finance (Aghion and Hewitt, 1998 and 2005).
The high stock of NPLs ties up operational capacity of the affected banks, it involves legal as well as administrative costs, and it weighs on the capacity of those banks to extend new loans to realise profits and to support economic recovery. 4. How to cope Ladies and gentleman, the financial world is clearly confronted with significant change and uncertainty.