Conclusion All financial institutions need sound risk-management practices. An enterprise-wide approach is appropriate for setting objectives across the organization, instilling a culture attuned to risk, and  4  BIS Review 2/2007  ensuring that key activities and risks are being monitored regularly. Clearly, there is always an opportunity to improve upon enterprise risk-management strategies and strengthening the discipline to implement those strategies effectively.
With regard to corporate finance, private banks remain cautious in extending loans to firms with high credit risks, while they continue to be more active in extending loans to blue-chip companies. Their lending attitudes seem to be becoming slightly more accommodative in areas such as terms and conditions for loans.