Even the problems of large  BIS Review 55/2002  1  banks could be viewed as mild, however, given the shocks felt by many in their customer base. In some respects, bank performance may reflect improvements in risk-management practices and also the greater diversification of revenues and exposures that has occurred in the past decade.
Bank performance also reflects, I believe, a greater awareness by institutions throughout the banking system that they should promptly address problems as they emerge. During this recession and recovery, both the banking industry and the regulatory agencies appear to have responded well, by acting in a timely manner and without unnecessarily constraining bank credit.