22 Payment breaks have provided some breathing space for those hardest hit – and is a key way in which the banking system is easing liquidity strains in the household sector. However, some borrowers may continue to experience dif culties when their payment breaks expire. In such cases, the Central Bank expects lenders to ensure appropriate solutions, including forbearance, are available.
I will focus today on these two issues: asset quality and the new framework for managing banking crises in Europe.