A summary of the results has for some time now been published in our quarterly Business Cycle Signals report. The enclosed study explains the objectives and the methods underlying these company talks. You will also find the latest issue of the Business Cycle Signals in your press kits. Both of these sources of information are, of course, also available on our website. Page 5/6  Berne, 12 December 2019 Thomas Jordan  News conference  Ladies and gentlemen, thank you for your attention. It is now my pleasure to give the floor to Fritz Zurbrügg. Page 6/6
Conversely, the scope of the European exercise will be much broader, including in its adverse scenario shocks – both at the level of the global economy and at that of each national economy – that affect all types of exposures, including the sovereign debt portfolio. All told, Spanish banks’ starting position ahead of the new exercise can generally be confirmed as relatively favourable, if we consider the disposals of problem assets, especially by the most vulnerable banks, the recognition of impairment of the assets most affected by the crisis and the sizeable increase in all banks’ loss-absorption capacity. 4. Beyond the analysis exercise  In any event, the exercise will, irrespective of its final result, be a good opportunity to reflect on the relative strengths and weaknesses of the Spanish banking sector. And this can provide a platform for banks to take strategic measures enabling them to strengthen their competitive position in the new institutional framework. In this connection, the regional diversification of the major banks – following a model of stand-alone subsidiaries, in terms of both capital and liquidity – has clearly been an advantage that has enabled them to soften the impact on their profits of adverse but not synchronised macroeconomic developments in different economic regions. Also worth highlighting is their proven capacity to obtain high levels of profitability in the retail business and to maintain the value of franchises, despite the shortcomings evidenced in the selling of loan and deposit products.