Highlights: Russian President Putin's state of the nation address

MOSCOW (Reuters) - The following are highlights from Russian President Vladimir Putin's state of the nation address. ON COOPERATION WITH THE UNITED STATES "We hope to join efforts with the United States in the fight against a real rather than dreamt up threat - global terrorism." ON BANKS "There is no doubt we need to stimulate lending to the real sector. The key question is what means and methods we use to do it. Obviously, only healthy banks with solid capital can develop lending. Thanks to the consistent and determined work of the central bank ... many weak players have left the market. All this is a good basis for a quick recovery of the economy, for the development of lending to the real sector." "The fundamental conditions remain unchanged: every level of the banking system must be healthy and sustainable." ON THE ECONOMY "The main reasons for the economic slowdown lie primarily in our internal problems." "We have delivered macro economic stability, preserved our financial reserves. We expect that inflation will drop considerably this year, it will be below 6 percent, possibly 5.8 percent. Next year, we can achieve a 4 percent inflation target, which will create conditions for economic growth." ON TAX "In 2018, we need to think about refining the tax system's mechanisms and apply (the changes) from Jan. 1, 2019." (Reporting by Moscow Newsroom)