In addition to mandatory actions of Threshold 1, Restriction on branch expansion; domestic and/or overseas Restriction on management compensation and directors’ fees, as applicable  _  borrowers below certain rating grades • Reduction in risk assets • Restrictions on/ reduction in credit expansion to unrated borrowers • Reduction in unsecured exposures • Reduction in loan concentrations; in identified sectors, industries or borrowers • Sale of assets • Action plan for recovery of assets through identification of areas (geography wise, industry segment wise, borrower wise, etc.)
We formed the judgement that the Bundesbank, which was the inflation-fighting central bank par excellence of the 1970s, had been prepared to tolerate inflation of 2 per cent or a little more, but would always act to reduce inflation if it rose to 3 per cent or more. This seemed to be a fairly sensible approach.