Despite the difficulties encountered over the past year, the liquidity of the banking sector is generally adequate. The average daily amount of liquid assets held in June 2002 exceeded the prescribed prudential minimum by about 9 per cent. However, the reported profitability of the banking sector has continued to decline as margins on earnings decreased and operating expenses increased.
It is important to understand that everyone will be better off - with higher growth and more jobs - if and when the reforms of the Lisbon agenda are delivered. We are now at your disposal for questions. 2  BIS Review 27/2004