The debate at European level is focusing again on the practicality of setting up a specialized company for managing the non-performing assets with public support to reduce the weight of these exposures in banks’ balance sheets and to develop the NPL market.
While the crisis has seen a high degree of international cooperation, increasingly national regulators may look to ensuring that foreign entities maintain adequate liquidity and capital within their jurisdiction to protect domestic investors. 4  BIS Review 24/2009  Does a central clearing counterparty reduce counterparty risk?