How has the debt crisis affected commercial banks?

Top commercial banks seemed to have weathered the debt crisis, however it remains to be seen whether their current strength and stability will help reestablish normal credit relationships between private banks and the developing countries. Some losses by private creditors are likely to be part of any resolution of the debt crisis, and such losses are implicit in some of the many proposals for dealing with the crisis. However, through a combination of self interest and public policy the current impasse in the debt crisis should be overcome. This may be done partly through large scale debt swaps sponsored by private or public agencies. Debt swaps are already being implemented bilaterally in small steps and through a variety of instruments, including debt conversions and buybacks.