To insist on overcapitalising to that extent would have pushed all of the banks into majority State ownership even if there was no need or clear justification for this.
Any policy instruments used to get the economy back on track would only have limited effectiveness, more so particularly in the case of monetary policy. We must find ways to resolve the challenges confronting our economy before it reaches that point. This cannot be done with monetary policy alone; I say this because fiscal policy and restructuring must work in tandem as well.