5 The Board’s latest Supervision and Regulation Report, which we published last week, confirms the current health of the banking system. •  It depicts a stable, healthy, and resilient banking sector, with robust capital and liquidity positions. •  It details stable loan performance and strong loan growth, particularly among regional banks, whose share of overall bank lending continues to grow.
(1) Importance of strengthening the early warning functions It is vital to control loans classified as “substandard” (S) because the likelihood of loan losses in terms of “write-offs and others” reaching a substantial size in the long term may vary substantially depending on the adequacy of the long-term management of this classification of loans.