Before this happens, both will undergo a comprehensive assessment of their balance sheets. The parent banks must draw up suitable capital strengthening plans to be put into effect as and when necessary. Europe The tools and reforms introduced in recent years in unfavourable economic conditions have enhanced the euro area’s ability to withstand macroeconomic and financial shocks.
In the Third Plan, improved export performance and slowdown in import demand led to some improvement in CAD and at the same time the financing requirements were met through stepping up of official assistance.