They can take chances on new ideas, new clienteles, and innovative companies– subject to sound risk management, of course. All levels of government can manage their finances prudently, provide public services efficiently, build up surpluses and rainy day funds and pay down debt.
In other words, the financial market turmoil has demonstrated that (1) risks disappear and that (2) removing assets from bank balance sheets does not mean that banks are no longer exposed to the risks associated with them.