Deleveraging is to be achieved through the identification and sale of non-core assets, mainly foreign-held assets. In this way, the impact of deleveraging on the domestic economy should be minimised. To the extent that assets can be sold outright then bank recourse to official funding can be reduced.
Restructuring of the system has also been taking place, with the establishment of two pillar banks based around the two main domestic banks, with those banks which are no longer sustainable being wound down and their deposits transferring. Further progress has also been made in the resolution of terminally damaged institutions.