At the same time, it is also true that the large number of different regulatory initiatives makes it difficult to maintain an overview and evaluate the consequences. Acting on the principle that it is better to be thorough than hasty, it would therefore be necessary to estimate the overall impact of the regulatory agenda and evaluate it in a cost-benefit analysis.
Non-performing loans (NPL) ratio favorably declined to 8.9 percent as of end-December 2005 from 11.0 percent last year and from a peak of 13.4 percent at end-September 2002. Likewise, NPA ratio went down to 12.5 percent from 15.9 percent last year. The industry’s strengthening balance sheet also reflected a steady increase in the loss provisioning for bad assets.