This is because taxpayers may be affected by the way in which microprudential supervision is conducted, notwithstanding the intention under the new EU banking resolution regime for the costs of bank failures to be borne by the bank shareholders and creditors.
The total freeze of the financial markets after the collapse of Lehman Brothers was strongly driven by psychological factors. This can also be said about consumer behaviour in the wake of the financial crisis. Consumers have kept, and are still keeping, their purse strings tight, despite solid growth in disposable incomes.