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Lenders may still need to raise more capital as they restructure balance sheets, the bank added.
This ia particularly likely to be the case when nominal GDP growth approaches the zero bound, given the need for nominal GDP growth to help restructure balance sheets, creating the ingredients to help drive recovery.
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An era of corporate prudence of restructuring balance sheets and generating cash is giving way to a more swashbuckling appetite for acquisitions and growth.
He is also reluctant to predict what may lie ahead for GM (shorn of brands and debt, but owned by the government), Chrysler (under the management of Italy's Fiat) and Ford (well-managed, valiantly avoiding the stigma of bankruptcy and bail-out, but still groaning under the weight of an only partially restructured balance sheet).
Compared with previous waves of restructuring, this one was more about generating operating efficiencies by cutting jobs and capacity than about restructuring balance-sheets.There's still a lot more juice to be squeezed from the lemon, says Hal Sirkin of Boston Consulting Group.
A nonfinancial company that runs into trouble often can invoke bankruptcy processes and restructure its balance sheet.
"The funds raised will enable us to restructure our balance sheet and pay down our existing debt.
In December, Seat Pagine Gialle, the Italian yellow-pages publisher, said it would not pay $72 million to creditors as the company looked to restructure its balance sheet.
Chrysler, which has taken longer to restructure its balance sheet and restock its product lineup, is still losing money and probably will not issue bonuses.
Across Europe, the past few lean years have forced companies to cut costs, restructure their balance sheets, reduce debt and boost profits.
Sbarro, the private-equity-owned pizza chain, filed for bankruptcy on Monday as it looked to cut its debt and restructure its balance sheet.
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