Many economist acknowledge the difficult challenges, with property values plunging often more than a third since the top of the market many lenders are reluctant to pull the plug because they know they will struggle to sell the assets. We need to have bad businesses fail, otherwise the economy will stack up with progressively weaker business models and growth will go into reverse, Thomas goes on to say. Banks giving breathing space to borrowers - has been a matter of concern for regulators. Critics of the banks have urged banks to build up their capital reserves, so that they can more easily bear the losses when they pull the plug on zombie businesses.
Footnote; The problem remains that after all the money and low interest rates little has changed in the "real" economy