1. For reading on these, see Lindgren, C. -J. Garcia, G. and Seal, M. (1996) ‘Bank Soundness and Macroeconomic Policy’, International Monetary Fund, Washington, DC.
2. Basel Committee on Banking Supervision (2002) ‘Supervisory Guidance on Dealing with Weak Banks’, Bank for International Settlements, Basel, p. 2.
3. The scale of the NPL problem in some countries has led to banking crises of such severity that large parts of the entire banking system of the country have been affected. See Lindgren, C.-J., Balino, T., Enoch, C., Gulde, A.-M., Quintyn, M. and Teo, L. (2000) ‘Financial Sector Crisis and Restructuring Lessons from Asia’, Occasional Paper No. 188, International Monetary Fund, Washington, DC.
4. Statistics from International Monetary Fund (2004) International Monetary Fund, Washington, DC. For detailed statistics relating to systemic banking crises, see Dell’Ariccia, G., Detragiache, E. and Rajan, R. (2005) ‘The Real Effect of Banking Crises’, Working Paper WP/05/63, International Monetary Fund, Washington, DC.
5. Ibid.