On their part, banks need to pursue a more active policy for NPE management, by promoting long-term solutions and multi-creditor workouts, as well as focusing on the restructuring of viable businesses. These lines of action, coupled with the economy’s path out of the recession and back to growth, should bring about a stabilization and, subsequently, a decline in the NPE ratio.
Yet certain areas still need a lot more work. I would like to discuss two of these issues here today: the “too big to fail” problem and the shadow banking sector. 2  Still “too big to fail”? The “too big to fail” problem was a key factor in the recent crisis, and it still isn’t completely solved.