Speed: Insolvency regimes influence the time required to enforce debt contracts and, therefore, the cost of credit. [25] It can take up to 4 years in some countries or 0.4 years in others to recover assets and collect contractual claims. [26] Such delays again imply that time is lost until new productive activities may resume.
Conclusion We have made considerable progress since the financial crisis erupted. The banking and financial system is a great deal better off these days. We have created a toolkit to make future crises less likely and make institutions more resilient to withstand any turbulence that does occur. Banks have more capital, and they are managing their risks better.