aspects in the process of setting up the local infrastructure for npl servicing and sales respectively. • the banks ’ internal workout : managing distressed smes. smes are the backbone of the greek economy. the shift of banks towards long - term forbearance measures coupled with the restructuring of viable businesses with appropriate changes in their structure, business model and, if necessary, corporate governance would help stimulate an uptick in economic activity and assist the rebalancing of the greek economy towards export - oriented sectors. ladies and gentlemen, the successful completion of the recapitalization of greek banks in late 2015 has been a decisive first step towards safeguarding financial stability and restoring the intermediation role of banks. the capital adequacy ratio of the greek banking sector stands ( pro forma ) at around 18 % and compares favorably with the average for european union banks. the next milestones for the greek banking sector relate to a return to profitability, a return of deposits through the restoration of depositors ’ confidence and, more importantly, the supply of credit for working capital and investment. undoubtedly, these goals are closely linked to the politically and socially sensitive issue of tackling non - performing exposures, which poses a real challenge for us all. as of september 2015, non - performing exposures stood at €107 billion, representing 43. 6 % of total exposures. hence, the more effective management of non - performing exposures, avoiding the pitfalls of regulatory forbearance or overenforcement alike, will bring about multiple benefits for banks, households, businesses and the society at large. in the process, it will unlock funding to the real economy, bolstering investment and employment. this in turn will enable the greek banking sector to protect and strengthen the productive fabric of the country, while concurrently enhancing its social role. i am confident that today ’ s workshop will show the significant progress that has already been made regarding the development of an appropriate institutional and supervisory framework for a more effective npe management. moreover, it will help to identify the appropriate tools and approaches to this end. i look forward to an exciting discussion and a very fruitful exchange of views. the overwhelming interest of market participants, from greece and abroad, to join this workshop is, i think, a key ingredient for its success. thank you again for being here today. bis central bankers ’ speeches

competition not only within, but also between countries with variants in the kind of market capitalism they practice. one author, bruno amable has identified five types of market capitalism, each characterized by specific institutional forms, and particular institutional complementarities : 1. the market based model ; 2. the social democratic model ; 3. the continental european model ; 4. the mediterranean model ; 5. the asian model. these models which we will not describe in detail, are characterized by a greater or lesser degree of state involvement, the particular role of financial and labour markets and the presence or absence of welfare state arrangements. the fact of the matter is that market failure and / or corporate malfeasance can create havoc with economic, political and social arrangements and stability. regulation by the state, social welfare or social protection mechanisms, and the self regulation of private sector entities are critical for stability, growth and development. the rights of shareholders, the rights of participants in pension funds, and the rights of ordinary citizens to enjoy the economic benefits of being part of a community are intrinsically enshrined in the social contract between state and citizen and to the extent that they become threatened, become enshrined in the laws of the country. this certainly is the case in the nation state where the concept of public goods and public policy represent the necessity to protect citizens ’ rights en bloc and not a particular section of the society. since the world is now so interdependent and contagion both in the economic and financial spheres is no longer a theoretical construct, but a highly possible event, there is an understanding that there are such things as international public goods and that corporate governance therefore extends beyond national borders. the most obvious area which reflects this is the financial arena and international standards and codes have started and proliferated from this arena into other related areas. the successive financial crises in different regimes of the world over the last two decades have manifestly illustrated the impact of the volatility of the financial system on both economic and political events. a special g22 working group on transparency and accountability was established in the late 1990s to review and report on this matter. they concluded that “ inadequate transparency by international organizations, national and governmental units, and private sector entities was a contributing force to the serious financial disturbances that have plagued the global economy ”. they concluded that markets cannot function efficiently and that they will continue to be highly vulnerable to instability, in the absence of adequate, reliable and timely information from all quarters.