And, 'despite the actions taken to raise bank capital, ease funding and improve liquidity, conditions in money and credit markets remain extremely difficult'.

Its bank capital position would continue to be extremely strong.

Indirectly, through damage to bank capital and, thus, the supply of credit.

The most significant regulatory failure that the credit crisis has exposed concerns bank capital.

This increase in bank capital may have been at the expense of lending into the economy but it has happened.