That could leave both themselves and their central banks in an awkward position at some point down the track. So in parallel with ongoing development of liquidity arrangements by central banks, there will need to be a focus in the supervisory community and the banks themselves on liquidity management.
The precise amount of NPLs has always been a matter of debate, and thus various improvements have been made such as clarification of the definition of NPLs and also the recognition process centering on the introduction of self-assessment. However, for financial institutions to precisely grasp detailed conditions of borrowers, it is imperative that balance sheets correctly reflect their financial conditions.