And here, there are still a few things we need to do. Take banks and public finances, for example. Governments often rely on domestic banks for funding. If the government cannot service its debt, many credit institutions may also end up in crisis. The market is thus not in a position to bear the losses without getting into difficulties.
During the crisis, this led to a situation in which taxpayers had to step in. To resolve this problem, we have to take a look at the rulebook for banks. Currently, government bonds are treated as risk-free. Thus, banks do not have to hold capital against them.