Further, any decision to extend support to an insolvent institution on systemic or national interest grounds would be one properly taken by a government under advice, not a central bank itself. Fourth, if support for an institution in difficulty were to turn out to be more than just temporary, the public sector would face difficult issues of how to structure that support.
Any  6  BIS Review 43/2008  such support should, however, come at considerable cost to the private owners and managers of the troubled entity. Public sector support should not be used to “bail out” private shareholders or those who were responsible for running the troubled institution.