This slide shows the key supervisory areas that we are considering – Improvement of the Board and Management; Asset quality deterioration; Liquidity; Declining profitability; Capital adequacy; and Banking operations. We also fully support the two major legislations being deliberated at the Senate and House of Representatives – The Financial Institutions Strategic Transfer (FIST) bill.
Finally, tax law also gave a major boost to the greater accumulation of capital and reserves. The tax reform in 2000 removed the unfavourable tax treatment of reinvested earnings and created an incentive for retaining more profits. Deleveraging yes, but not driven by a credit crunch: that is how a successful deleveraging process can best be summed up.