To minimize the procyclical effects of the interventions, we called on the banks to increase their internally generated resources by further curbing operating costs, dividends and executives’ and directors’ compensation, consistently with banks’ profitability and capital adequacy. For banks that will have to undertake more far-reaching adjustment, a contribution must come from the sale of non-strategic assets.
I spoke last week at the Institute of Banking and Financial Services annual banking dinner about the current challenges facing the banking industry. Tonight I would like to make a few brief remarks about the current macroeconomic situation and prospects, notably as regards economic growth, the exchange rate and inflation.