Can insolvency proceedings be simplified? Are any organisational adjustments necessary? Thorough preparations can help banks to distinguish “good” risks from “bad” ones and continue to lend to firms with a sustainable business model. Phase 3: Facilitating structural change, limiting vulnerabilities Our simulations predict that insolvencies and loss allowances will rise in the future.
But it would be wrong to assume that this goes for everyone in our society. Regarding the future of cash, at least for the foreseeable future, central banks should make sure that cash remains accessible, available and affordable – for everyone. At De Nederlandsche Bank, we even advise people to carry some cash. For instance in case card networks are down.