Utilization of Financial Institutions’ Self-Assessment in Enhancing Credit Risk Management Summary The government’s Prompt Corrective Action (PCA) measures to be implemented from April 1998 require financial institutions to conduct adequate assessment of their assets and to calculate appropriate ”loan-loss write-offs and provisions” based on their own internal rules and referring to guidelines of the authorities.
This is markedly different from the “flight home” effect observed during the 2008–09 financial crisis.5 Syndicated lending, however, targets large non-financial corporations and so studies based on such data do not easily lend themselves to conclusions on the effects of the sovereign debt crisis on SME access to finance.