If they do not meet this requirement, they should seek to raise capital and retain profits. Ultimately, government capital injections may be required. Moreover, there is agreement in the EU that it should be possible for member states to decide to provide more individual government guarantees to their banks on uniform conditions, along the lines of the scheme we have applied in Denmark.
Indeed, Bank Rescue Package 2 means that there is still heavy government involvement in the Danish banking sector by way of both government capital injections and individual government-guaranteed bond loans. These measures are temporary and were intended to provide the necessary breathing space to adjust the capital base, sources of funding and business models.