The ratio of core 4  BIS central bankers’ speeches  tier 1 capital to risk-weighted assets rose from 10.0 to 10.6 per cent. Coverage and capital ratios must continue to increase; this preserves investors’ confidence in the banks and lowers the cost of funding, thus helping to ensure an adequate flow of credit to economic activity.
European Central Bank: Press conference – introductory statement Introductory statement by Mr Jean-Claude Trichet, President of the European Central Bank, Frankfurt am Main, 6 July 2006. *  *  *  Ladies and gentlemen, let me welcome you to our press conference and report on the outcome of today’s meeting of the ECB’s Governing Council.