We must not allocate capital so poorly, 5/6  BIS central bankers' speeches  recreate “Heads I Win, Tails the Taxpayer Loses” incentives, and sow the seeds of another lending excess. There are better ways to do it building upon some performance targets already set under the ongoing recapitalization plan. Let me propose five options: 1.
Private capital raising: The healthier public sector banks could have raised private capital by issuing deep discount rights in 2013, and some can still do so now. They must be required to do this to share the government’s burden of recapitalizing banks.