The cyclical recovery of the euro area economy is becoming increasingly solid and downside risks to the growth outlook have further diminished. Today the configuration of risks around the most likely growth outlook is closer to balance than it has been in some time. Yet, downside risks still prevail, being mainly related to remaining fragilities in the global outlook.
The only area where the BIS standards are yet to be implemented in full are those relating to asset classification, particularly in respect of re-defining NPAs as those past due for a quarter (instead of 2 quarters as at present) BIS Review 13/1999  –7–  and the reduction in the period for classifying such accounts as doubtful from 24 months to 12 months.