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"We are facing up to our banking difficulties," Mr. Lenihan said.
The banking difficulties of the 1980s prompted Congress to enact the Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA).
He was vague on whether China was prepared to increase its monthly lending to Europe by an amount that might ease the euro zone's budget and banking difficulties.
The ongoing banking difficulties have prevented Iran from capitalising on interest shown by western businesses in returning to the country, or finalising lucrative deals with the west, such as the purchase of planes from Airbus and Boeing.
Nicholas Bibby, an economist in the Singapore office of Barclays Capital, said that falling share prices across the region showed that many investors were still worried that banking difficulties might spread even after Congress passed a $700 billion economic bailout plan in Washington.
When its debt crisis flared up last year European leaders hoped to contain it at the Greek border, providing a bail-out worth €110 billion ($158 billion) over three years, of which €80 billion came from other euro-area members and €30 billion from the IMF.Any hope of containment was shattered when Ireland's banking difficulties forced a second rescue last November.
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But the banks' difficulties are also felt acutely at home.
In part, these banks' difficulties stem from their public-sector rivals' ability to draw on state guarantees which, however, are due to be phased out from July 2005.
Depositors are skittish and banks are having to offer them higher rates.Higher funding costs have pushed up lending rates, but the main way that the banks' difficulties are affecting the economy is through credit rationing.
Indeed, banks' difficulties in policing themselves and bringing about cultural change suggest why governments should implement and enforce clear regulations barring harmful activities and, more important, impose harsh penalties for violations.
The fact that Resona's new management seems to have discovered another ¥1 trillion or so of bad loans since May is one sign that Japanese banks' difficulties are far from over.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com