The long financial crisis has taken a heavy toll on the markets and the institutions. It has put monetary union itself to a severe test. The banks are suffering the heavy consequences of the double-dip recession and the sovereign debt crisis. They have met with serious funding difficulties, coped with the need for capital strengthening, and suffered a sharp drop in profitability.
Their initial, underlying soundness, also a reflection of supervisory action, has enabled them to withstand the shock. However, overcoming the crisis once and for all will necessitate a further, protracted effort. I have described the steps that are ineluctable, on which intermediaries must take action without delay.