They would reap the returns, while taxpayers had to bear the risks. The political economy consequences of the bailouts are still being felt today. Second, bailing out banks prevents the non-viable ones from exiting the market. Instead, they drag on and put pressure on margins for other banks. The sector does not consolidate, profitability remains subdued, and that gives rise to new risks.
(...) we asked Dr Tietmeyer to consult the relevant international bodies on these reforms ...” In order to fulfil this mandate, I have held thorough consultations with representatives of all the G-7 countries, the international financial institutions, and various international bodies.