However, especially in the banking systems that are only marginally burdened by the legacy of the past, the conditions for future growth need to be recreated. Along the lines of what has been done in some countries for existing “toxic” securities, consideration could be given to public guarantees for senior tranches of new credit pools.
They need to establish a strong risk culture, set up adequate risk governance and integrate it into their overall structure. And finally, all banks have to adapt to more stringent rules. It is true that they come at a cost, but in the long run, their benefits are greater. Society benefits in any case, but so do the banks.