Earnings power of financial institutions and a stronger capital position  When the effective functioning of the financial system is finally restored, major banks will enjoy strong international competitiveness, and local banks will be able to provide new financial services for regional development. These benefits will only be possible with the strengthening of earnings power.
For this reason, the effect of consolidation on small business lending was a focus of the G-10 study. It has continued to be a topic of research by Board staff, and I am pleased to see that it is the subject of papers presented at this conference.