For example, given the stressed funding position of the Government, I would myself have hesitated to call for an additional € billion to be applied right away to further strengthening the banks’ capital, as is now agreed. It will be important to ensure that the State gets good value for this investment and that over-capitalization is not dissipated in cost inefficiencies.
Reducing the banking uncertainty will not be fully accomplished overnight. Extracting progressively more detailed and comprehensive information from the banks will help to assess the quality of their remaining non-NAMA book. The evolution of loan performance as the economy recovers will provide further precision.