Better in most cases for both borrower and lender if a fair restructuring can be achieved without recourse to the bankruptcy procedures. 6  BIS central bankers’ speeches  At the same time, unsustainable mortgages are very much in the minority. Existing rescheduling approaches will be appropriate for many, if not the majority of arrears cases.
The bigger role in financing being played by capital markets is also, on balance, probably a good thing, even though we are yet to be able to assess how such markets will perform under more stressed conditions. The local economy has been improving and the financial system overall gaining in resilience, albeit with a few pockets to watch.