This is a serious weakness that we cannot afford to live with any more. (c)  Corporate restructuring:  Financial Sector Reforms in absence of corporate sector restructuring i.e. pruning costs, reducing debt and increasing efficiency will have only shortterm beneficial effects.
The ratio of total corporate debt to GDP should be lowered, capacity has to be expanded and labour productivity needs to be raised. Firms have to be in better shape and invest in productive activities while new firms have to enter credit markets. Firms will fail in their businesses for a variety of reasons.