In keeping with our supervisory priorities, it remains critical that banks manage risks prudently, price credit risk sustainably, and remuneration and incentive structures are appropriately governed to support a resilient business model going forward. As I noted earlier, mortgage NPLs constitute the largest share of system-wide NPLs. Since the onset of the crisis, many mortgage holders have had difficulty in repaying their mortgages.
While the situation is improving, its resolution is critical, for individual borrowers in distress, banks, and the system as a whole. The Central Bank has worked hard to ensure that the appropriate protections are in place for these borrowers who are in difficulty, and ensure that the banks have the financial and operational capacity to resolve the problems.