The strong support of Banque Cantonale Vaudoise's majority shareholder, the Canton of Vaud, which, despite the absence of a formal guarantee, has provided substantial capital support to the bank; Improved asset quality and capitalization subsequent to the balance sheet cleansing exercise undertaken in 2001 and 2002; and Banque Cantonale Vaudoise's strong positioning in its regional market. Modest--albeit improving--core profitability, which continues to lag that of cantonal bank peers; A comparatively greater exposure to market volatility--although this has reduced subsequent to a refocusing on core activities--which has rendered operating performance more vulnerable to market conditions; and Capitalization--although improved--is considered to be of a weaker quality due to the inclusion of bearer participation certificates issued in the context of the bank's recapitalization,
