Unconventional monetary policy actions Given the magnitude of the global financial crisis and its aftermath, the Federal Reserve clearly needed to provide additional monetary accommodation beyond simply keeping shortterm interest rates close to zero. Consequently, like a number of other major central banks around the world, the FOMC has been deploying unconventional policy tools to promote the economic recovery.
From the bottom up, banks also need to examine the drivers and scale of non-performing loans. In doing so, they are expected to adopt an extremely granular approach. A careful assessment of the external environment, the resources available to debtors, as well as the internal operational capacities, will contribute to the identification of the most appropriate strategy to reduce non-performing loans.