 Moreover, the industry was on the threshold of increasing globalization, and required radical shifts in regulatory policies in order to comply with global standards.The Enron scandal had happened continents away, but its reverberations in a market already weakened by the 1997 financial crisis necessitated rapid action to plug regulatory loopholes while still allowing the rule of market forces.By the time Buenaventura became central bank governor, over fifteen percent of the total loan portfolio of the entire banking sector was considered non-performing loans.