Since we are talking about the speed of the recovery of the banking system and the question of time, it is perhaps useful here to make the distinction between current capital requirements and what one might call the stressed capital position of the banks.
Very simply put, the current capital position is the calculation of the banks’ capital requirements against current prevailing minimum regulatory standards and in light of the bank’s current accounting position. As I have just noted, the current capital position of the banks is healthy due to the significant injections of taxpayer and private funds that have taken place.