As the world enters the fifth year of economic growth, regulators, shareholders and creditors of international banks must be starting to wonder what horrors are building up on the banks' balance sheets. Disturbingly, the problem loans if they exist will probably be hidden from public scrutiny in the form of bilateral lines. No doubt they are being justified to the banks' internal credit committees by that well-worn excuse that they are essential to maintain relationships with clients that offer other, more profitable business.
January 01, 1997