The PCAR exercise has , by some measures, been to overcapitalise the banks, so the expectation is that at some point, when banking conditions have settled down  2  BIS central bankers’ speeches  sufficiently, the taxpayer will wish to recover some of that capital, for example to assist the overall government debt position in due course.
Also, any approach to restructuring needs to take account of the risk that it creates incentives for borrowers to cease meeting their obligations. But despite these considerations there is now more scope for the banks to take individual decisions, based on the particular circumstances of the borrower, to restructure debt. And I am encouraged by the Government’s commitment to reform the antiquated bankruptcy laws.