Emerging economies’ financial markets continue to show nervousness on the whole, but recently have regained stability because the Federal Reserve’s reduction in the pace of its asset purchases was postponed (Chart 4).
Furthermore, frequent and regular reporting to the board is necessary to ensure progress versus agreed targets is achieved. However, in order to develop ambitious, yet realistic strategies to reduce NPLs, boards first need to gain a clear understanding of the full context in which they operate. It is clear, at present, many boards have not yet established this.