It has been suggested that the banks should be made to repay the taxpayer funds that have been used by the Government to prop up the UK's financial system.
Speaking at a conference in Japan, Paul Tucker, the Bank of England's new deputy governor, admitted that while similar rescue packages may be needed to support the banks again in the future, there should be an opportunity to recoup at least some of the funds in the long term.
"If the authorities deemed that a public equity injection was necessary in order to preserve stability, government could be authorised to provide the support, but with a right to claim back the eventual cost, if any, from an increased insurance levy on the banking system," he commented.
Any payment would take place over a prolonged period after the current downturn had ended.
He also suggested that the authorities should be prepared to let big banks fail when, in systemic terms, it is safe to do so.
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