In recent years the exceptionally low level of risk premiums and of interest rates, the abundance of finance in the form of both loans and other financial instruments, and the large volume of firms’ internally generated funds may have softened the effects of structural disparities, which could re-emerge in the presence of less favourable economic and financial conditions.
Conclusion: perception vs. reality We are fond of repeating the old adage: “An ounce of prevention is worth a pound of cure.” Recent experience expands the notion and shows that good prevention measures can also make the cure more effective.