The prolonged problems in the banking sector are a key reason that the Japanese economy did so poorly after the bubble burst. 5  Frederic S. Mishkin and Eugene N. White (2002), "U.S. Stock Market Crashes and Their Aftermath: Implications for Monetary Policy," NBER Working Paper Series 8992. Cambridge, Mass.
The objective was to get the banks to recognize the hitherto masked stress in their balance sheets. The AQR is now complete. The Reserve Bank is neither denying the scale of the NPAs nor trying to forbear on them. Instead, it is fully focused on resolving the assets recognized as NPAs.