• German banks are now in better shape, but some vulnerabilities, structural weaknesses remain
• Need to reduce excess capacity in German banking market
• Commercial real estate funding, structured securities most vulnerable segments of foreign credit exposures
• Loss provisions in German banks to fall to 23 bln in 2010 from 37 bln in 2009
• 2011 loss provisions in German banks at around 23 bln
• No indications banking system would be unable to play its part in German economic upturn
• New banking regulation must not cause migration to shadow banking system
• Funding situation of German banks has at least in short-term returned to normal
• German banks have about 100 bln euros on balance sheets from structured real estate financing risk positions
• German banks’ Ireland risk is about 25 bln euros