First, the European supervisory framework needs to be overhauled, in the light of recent experiences. This is certainly the case in respect of the euro area. We cannot afford to let this crisis go to waste. For that, it has created too much havoc. The people of Europe are suffering from the fallout of the financial crisis.
One must understand that smaller firms and new entrants, which create dynamism and enterprise within sectors of the economy, get unfairly competed out when large borrowers are routinely able to obtain soft landing even upon defaults and under-performance. 26. Finally, you may be knowing that banks are required to keep provisions for loans on their books, to cover for future expected losses.