Measures taken to improve operations included continued focus on loan recovery to improve NPL ratios; reducing cost to income ratio; avoiding unnecessary costs; focus on derisking and de-leveraging the balance sheet and liquidity management. There is no doubt that these initiatives enabled the nine banks to continue normal business operations and prevented a total collapse of the banking sector.
Regulatory perimeter issues are being addressed by putting in place a regulatory framework for the shadow banking system. iv. Another set of reforms are aimed at strengthening financial market infrastructures by addressing issues in the OTC derivatives markets by ensuring that the transactions in these markets are reported, centrally cleared and, where possible, settled through a central counterparty.