The proposed retail lending approach is designed so that it can be implemented in significant part with data that are readily available. In designing the community development approach, we have been mindful of burden as we consider any additional data that might be required to implement certain metrics. Finally, as previously noted, the metrics are tailored for local conditions and cyclical considerations.
The slide of the GDP growth rate into negative territory raised the debt-to-GDP ratio to unsustainable levels despite the fiscal consolidation, and caused debt-servicing problems for households and businesses. This was the main, but not the exclusive, reason why NPLs rose dramatically, weakening banks’ asset quality, thus making it difficult for banks to finance the real economy.