By tightening capital requirements and introducing a bail-in regime, the principle of liability is being more rigorously enforced in the banking sector: the greater the volume of liable capital that shareholders and creditors have available, the greater the losses that a bank is able to shoulder and the less likely a taxpayer bail-out becomes.
The principle of liability also plays an important role in the discussion surrounding a European deposit insurance scheme. It cannot be denied that a single deposit insurance scheme could have a stabilising effect.