We have learned the lessons from the global economic crisis that, to prevent financial crisis, we should first guarantee the healthiness of financial institutions, and never tolerate high leverage, low capital adequacy and large chunks of non-performing loans. When an environment is not open and competitive, it tends to tolerate low standards.
This requires that the remuneration of the capital injection should be sufficient to compensate the taxpayer and to induce an early repayment, but not punitive so as to penalise private shareholders. An interest rate that is too high on the public injection would encourage banks to pass on these rates to the end-users, who would ultimately be paying the bill.