In the remaining two cases, the Core Tier 1 ratio stood slightly below 9% and the target will be met in the first quarter of 2012. Banks were capitalised through market-based solutions, a clear indication of the Portuguese banking system’s overall financial strength. The strengthening of the banks’ capital position will continue into 2012.
Current capital needs arise from the combined effect of more demanding capital requirements in the adjustment programme (a Core Tier 1 ratio of 10% by the end of 2012) and three additional factors:   The recommendation made last December by the European Banking Authority (EBA), aimed at creating a temporary buffer for sovereign exposures in the main European banks;    The results of the Special Inspections Programme (SIP) on the valuation of banks’ assets;    And the impact of the partial transfer of banks’ pension funds to social security.