From that time onwards, Spanish bank lending which was already growing at 14 per cent annually went into a further boom, growing over 25% in 2005 and 2006. The reserves naturally proved insufficient when crisis struck. This further strengthens the belief that economic cycles which are harsher and deeper than previous ones can wipe out the provisions based on earlier cycles.
While on the subject of crisis, I also want to share with you a dilemma. Crisis management is a percentage game. We have to do what we think has the best chance of reversing the momentum. At the same time, we have to weigh the short-term benefits against the longer term consequences, including moral hazards.