This was achieved in the context of a very demanding domestic and external environment, characterized by the structural rebalancing of the Portuguese economy and the persistence of financial fragmentation and economic weakness in the euro area. Thus, let me outline the steps taken so far to strengthen the resilience of the Portuguese financial system.
Strengthening solvency and liquidity The core Tier 1 ratio of the banking system increased from 8.1% at the end of 2010 to 11.9% at the end of the second quarter of 2013. From 2010 on, Banco de Portugal has adopted several measures towards preserving adequate capital ratios.