On the contrary, if the government were to follow a time consistent policy, this would not be optimal. To illustrate this theory, Kydland and Prescott used some very accessible examples such as the following. Imagine a flood plain in which the government does not want its citizens to build their houses because it would have to construct dams in order to protect the houses.
The capital buffers are of virtually no assistance in such times and what matters is the liquidity of the assets held by the bank and the nature of its interconnected dealings with other institutions.