They have enabled banks not only to reduce the number of tellers they need but to use less - and cheaper - office space.

Financial support from the government enabled large banks to restructure their businesses by prolonging loans to key borrowers.

Existing accounting standards have enabled banks to conceal huge amounts of potential liabilities, he said.

To manage this it set up a tender arrangement to enable national banks to acquire funds at market rates in exchange for treasury notes.

The Brazilian money and success at cost controls enabled most other big banks to show gains.

In 2004 he lowered interest rates to 1%, enabling banks to borrow money for free, adjusted for inflation.

More recently, it was the securitization of mortgages, which enabled banks to provide home loans without worrying if they would ever be repaid.

The low cost of funds also enabled banks to invest in medium-term securities.

The declining price of technology has enabled small banks such as Patriot to offer online banking services, something they could not have afforded several years ago.

That enabled banks to make hefty profits with minimal risk, simply by buying two-year to five-year government securities.