The economy bottomed out at the beginning of 2002, entering a period of slow but steady recovery that has continued through the middle of the decade. After lingering for more than 10 years, the negative aftereffects of the bubble-economy collapse finally appear to have been largely overcome. The non-performing loan ratio of major banks fell from over 8% in 2002 to under 2% in 2006, and this has contributed to a recovery in bank lending capacity as banks are once again able to fully function as financial intermediaries.