In particular, we have imposed more stringent capital requirements: a Core Tier 1 ratio of 9% by the end of 2011 and of 10% by the end of 2012. This is well above the 8% benchmark in the EU legislation. In addition, we have recommended the sale of assets and set limits to the distribution of dividends.
The more stringent capital ratios aimed at strengthening the resilience of the banking system in the context of a very strong adjustment of the Portuguese economy. This resilience is especially important at times of economic adversity, where the recognition of impairments is a dynamic exercise with a powerful impact on banks’ net income and capital positions.