So, this approach also only makes sense if there is European direct capital support to make this happen. In the absence of these essential conditions, we then have the third approach, the Dell school. This is, of course, named after Michael Dell, one of the innovators of just-in-time manufacturing.
This involves making sure that banks stay above their current minimum capital requirements, 7 and living with that just up until the point of need of recapitalisation and public support, to meet Basel 3 or stress losses. Call this a just-in-time approach to backstops, if you like. Banks therefore make their slow progress towards full Basel 3 compliance step-by-step.