Those include how to evaluate complicated structured products whose market liquidity is extremely low, and how to incorporate off-balance sheet vehicles. In addition, the traditional issues also persist. The nonperforming asset problem of U.S. and European financial institutions appears to have been gradually shifting to a traditional problem of loans on the banking book.
The difficulty of evaluating the loan asset value, when the adverse feedback loop between the financial system and the real economy is at play, seems to be an unflagging issue at any time. Third, the framework to deal with troubled financial institutions was not well-equipped.