Turning now to the role of the banking sector in providing necessary credit to finance dynamic businesses, the issue of non-performing loans remains the greatest challenge. The stock of nonperforming loans (NPLs) has reached unprecedented levels, with the deterioration in asset quality being widespread.
There is no doubt that one of the main drivers of the sharp rise of NPLs has been the deep and prolonged economic recession and its impact on the financial condition of households and the non-financial corporate sector.