Multiple tools have been used to enable this reduction, including: re-engaging with borrowers; restructures; accounting write downs; engaging through the Insolvency Service; loan sales; loan securitisations; and seeking resolution through the courts.
The Basel Committee has also recently issued a consultative paper on certain trading-related exposures and double-default effects, stemming from the work of a joint group formed by the Basel Committee on Banking Supervision and the International Organization of Securities Commissions. We are acutely aware that our continuing work on these issues is complicating banks' preparations somewhat.