Frameworks have been established for the resolution of failed banks and for injections of public funds into troubled banks. Necessary revisions have been made to tax and accounting systems, and bankruptcy laws. In addition, inefficient and outdated trade practices that existed in the relationship between banks and their corporate clients are being reviewed, as evidenced by the accelerated unwinding of cross-shareholdings.
Consequently, it seems that gradual but concrete and visible progress, particularly among major banks, has been made in resolving the NPL problem that has shackled banks’ business performance.