Banks’ financial robustness improved due to a considerable strengthening of the capital base: the cumulative increase of the Core Tier 1 capital in the banking system was 28.6% over the period, with risk-weighted assets increasing by 2.8%. All but two of the main banks are expected to have met the 9% target by the end of 2011.
In the remaining two cases, the Core Tier 1 ratio stood slightly below 9% and the target will be met in the first quarter of 2012. Banks were capitalised through market-based solutions, a clear indication of the Portuguese banking system’s overall financial strength. The strengthening of the banks’ capital position will continue into 2012.