Good-quality, consistent and reliable data and information relating to the loan portfolios of the banks as also sophisticated IT resources are critical to the proper risk assessment under the Basel II framework. Data limitation is a key impediment to the design and implementation of credit risk models.
The full truth is, however, that this was also supported by a changing behaviour on the part of trade unions and employers’ associations, resulting in more moderate wage policy and the strengthening of establishment-level agreements as trade unions reacted to the further increase in the already high level of unemployment.