In contrast, one estimate puts the total number of banks resolved in the euro area in the same period at around 50. [31] In the absence of credible backstops, the clean-up of the euro area’s banking sector took considerably longer.
Today, it is estimated that a public backstop for the whole euro area would have the same credibility as that of the US, thereby significantly reducing risks in a crisis. But if national governments are still expected to backstop their own banks, countries such as France or the Netherlands could face potential fiscal costs of 10-12% of their GDP.