But according to certain interpretations, the rule is applicable, for instance, to a listed bank that fails the baseline scenario of a stress test, cannot raise private capital and has to request public assistance. Very likely, if such bank is formally put into resolution it may suffer irreparable damage in the market place, further complicating its situation and generating spillover effects on other banks.
The sluggish increase in nominal wages is thought to reflect low productivity growth and the strong deflationary mindset, since, in the long run, nominal wage growth should equal productivity growth plus inflation. Again, these developments support the view that sustained improvements in productivity are necessary to maintain the economic growth momentum.