plans on how they intend to reach the new capital requirements through market solutions. the adjustment programme foresees a temporary state bank solvency support facility up to eur 12 billion, which may be used if the market - based solutions fail. unquestionably, immediate priority must be given to maintaining adequate liquidity conditions in the banking system and to strengthening the capitalisation of banks. however, in the medium term, it is fundamental to ensure that the domestic savings levels will make the country less dependent on international financial markets, bolstering the resilience of the national financial system and the overall financial stability conditions. to this end, banks are requested to devise by end - june medium - term funding plans consistent with this objective. the plans will be subject to regular quarterly reviews and adjustments in the plans will be requested as needed to ensure their compatibility with the deleveraging objectives. at the same time, the programme foresees the strengthening of the supervisory and regulatory framework of the banking sector, including, inter alia : the adjustment of the legal framework governing the restructuring and resolution of credit institutions ; the reinforcement of the deposit guarantee fund ( fgd ) and of the mutual agricultural credit guarantee fund ( fgcam ) ; and the introduction of amendments in the insolvency code to support effective rescue of viable firms. the coming years will be extremely demanding for the financial institutions but also for the banco de portugal as the regulatory and supervisory authority. however, i am confident that together we will overcome the challenges and ensure the financial stability conditions required for the sounder growth model we all wish for portugal. bis central bankers ’ speeches

’ s supervisory role. given the importance of 6, 800 regional and community banks located in almost as many communities across this country, it is inconceivable to me that the central bank of the united states would not have a role in their oversight, through the supervision of state member banks and bank holding companies. the federal reserve system was designed by its founders with the goals of it supervising a broad cross section of u. s. banks, assuring equitable access to the federal reserve liquidity facilities regardless of institutional size or location, and contributing to the stability of the financial system – not only on wall street but on america ’ s main street. it does this job well. in the crisis of the ‘ 80s, which affected both large and small banks, banks supervised by the federal reserve proportionately imposed the least losses on the fdic when they failed relative to banks supervised by other federal agencies. in addition, the federal reserve ’ s role in supervision of banks and bank holding companies provides it critical information on local economies in places such as muskogee, okla. ; santa fe, n. m. and scottsbluff, neb. and to answer the question : yes, our role in regional and community bank supervision supports our responsibilities as members of the federal open market committee, by expanding our understanding of local and regional economies. stripping the federal reserve of its responsibility for supervising regional and community banks and bank holding companies should be unacceptable to anyone who cares about equity in the nation ’ s banking system, largest to smallest bank, and the nation ’ s regional and local economies. confining the federal reserve ’ s supervisory role to only the largest firms will, i fear, inadvertently make the federal reserve the central bank to the largest firms while disenfranchising the other 6800 banks. the map tells the story. when congress created the federal reserve nearly a century ago, it gave us a decentralized system that spanned the continent. the explicit purpose for this structure was to better balance the interest of main street against those of wall street. recent experience confirms that this structure is as important today as then, perhaps more so. community banks are important to the banking system and to the economy, and therefore continue to be important to the federal reserve. i have said before but it deserves repeating : it would be a tragic irony if the outcome of this crisis is a gain in power for the largest firms at the expense of the other 6, 800 regional and community banks