And to be honest, commercial banks did go a step too far: a) they advertised borrowing and borrowing alone, with hardly any mention of savings; b) products were offered by banks, but also by agents, merchants, etc. ; c) telephone calls to potential clients became a usual practice, luring customers into yet another cash credit or credit card.
The European resolution framework has complemented solvency requirements. For even in cases where all previous efforts to keep a bank alive and healthy prove unsuccessful, the financial system should not be prone to panic reactions and contagion effects. Banks and responsible authorities have to be prepared for failure scenarios and guarantee smooth resolution. Importantly, resolution and solvency policies are not aimed at identical issues.