• 2012 was not a good year for banks (just 2012???)
  • states must provide backstop after asset review
  • Situation in financial system remains fragile
  • Financial stability has improved
  • Risks in bank funding are receeding
  • probability of of large bank default fell with OMT
  • States must be ready to to recap banks
  • Some bank balance sheets in need of repair
  • ECB monitoring quite closely speed of inflation decrease