Fears of counterparty risk disrupted interbank lending in many countries, intensifying already existing funding difficulties. The drying up of the wholesale funding market hurt Korea's banking system in particular; prior to the crisis, it had accounted for about one-third of Korean bank funding. In Japan, some banks' exposures to equity markets damaged their capital positions.
However, if the macroeconomic conditions deteriorate, the GNPA ratio may increase to 6.3% under severe stress scenario by March 2016. Drivers for deterioration in asset quality 5. Theoretically speaking, there could be various factors which may cause a good loan to turn into a problem loan.