In addition, some banks have taken onto their balance sheets assets for which they provided liquidity backstops or other forms of support. These balance sheet pressures have come at a time when asset write-downs were already weighing on capital. As I will discuss later, this episode underscores the important connection for banks between capital adequacy and liquidity, particularly in times of financial market stress.
At that time I said that the draft deserves an eight, given the timely manner in which the finance minister and prime minister managed to develop and move along the draft as well as the determination of the government not to give in to the huge wave of expenditure demands by ministries, which would have washed away the prudent budget policy worked out with so much difficulty during the crisis years.