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system remained "fragile," with banks requiring large inputs of
capital and balance sheets still clogged up with toxic assets. "The
financial system... remains fragile," said Mario Draghi, governor of
the Italian central bank and chairman of the FSB, a global watchdog
made up of senior representatives of national financial authorities.
"There are strong needs for capital, there are parts of the balance
sheets of banks that remain blocked," he told reporters in Turkey's
biggest city, Istanbul, after a meeting of a panel of the
International Monetary Fund. He also said that tests on the stability
of 22 of Europe's top banks whose results were announced last week
had shown "a relatively satisfactory state of things for European
banks." The European Union's Swedish presidency said the tests had
shown lenders were " sufficiently capitalised" despite credit losses
for 2009 and 2010 estimated at 400 billion euros (583 billion
dollars).
