Notwithstanding the progress of the last few years, the depth of the recession will inevitably affect banks’ balance sheets in the medium term. The increase in non-performing loans will have to be dealt with in a timely manner, using all available instruments, including those for their restructuring and sale on the market.
After the acute stage those risks abated, even though the high level of debt and the volatile risk environment continues to demand great care in the implementation of monetary policy. On the other hand, the decisions of the central bank may gradually return to normal, as inflation and growth prospects come into focus again. What are the current dilemmas of monetary policy?