In addition, a loss of credibility in the financial system triggered by the collapse of some financial institutions worried depositors and financial markets alike, and seems to have contributed to the economic deterioration witnessed during 1997 and 1998 through a worsening of household and corporate sector confidence.
The disposal of the non-performing assets of financial institutions has made considerable progress, at least from the accounting viewpoint, thanks to efforts on the part of financial institutions as well as capital injection into major banks using public funds. Needless to say, financial institutions must make further efforts, including the removal of non-performing assets from their balance sheets.