And it is not just a one-off effort – it needs to be continuous and persistent, driven by high quality analysis. When we get to the end of the cycle of work we need to start again at the beginning. The ECB Guidance to banks on non-performing loans is therefore a very important step towards NPL resolution across the European banking system.
Secondly, it is clear from the Irish experience is that no single measure will resolve NPLs. Supervisors cannot solve it all alone. What has helped Ireland is the combination of factors: including NAMA, increasingly intrusive and prescriptive supervisory measures, and some legal initiatives. The interplay with economic recovery is obviously hugely important also.