To increase the transparency of financial institution management and to thereby strengthen the market’s confidence, however, it is essential that institutions expand the range of disclosure on their own initiative, not only with respect to nonperforming loans but also to the implementation of their restructuring measures, and thereby provide the market with a convincing explanation of how they intend to improve, or how they have improved, their financial strength.
Second, the recent series of financial institution failures has highlighted the importance of preventing the surfacing of systemic risk and of thereby ensuring the stability of the entire financial system.