BIS Review 34/2007  1  In banking, much progress has been made to clean up the stock of non-performing assets that built up since the 1997 Asian financial crisis…. and banks have stepped up the pace in their re-capitalization efforts. Operational improvements have likewise been introduced to strengthen risk management processes and to achieve more efficient operations.
As a result, domestic bank balance sheets are stronger than they have ever been since 1997 and profitability has been restored. All of these developments are generating a positive chemistry that goes hand-in-hand with windfall gains from our ever-growing remittance flows and robust merchandise exports.