Asks Quote by Jeroen Dijsselbloem
“What we've done last night is what I call pushing back the risks..If there is a risk in a bank, our first question should be 'Okay, what are you in the bank going to do about that? What can you do to recapitalise yourself? If the bank can't do it, then we'll talk to the shareholders and the bondholders, we'll ask them to contribute in recapitalising the bank, and if necessary the uninsured deposit holders.”
About This Quote
Source Speech: Remarks at European Central Bank Forum, 2015
The speaker urges proactive risk management in banking, suggesting that any identified risk should trigger immediate actions by the bank, shareholders, bondholders, and possibly depositors to restore capital.
In simple terms: Address risks early by involving all stakeholders to recapitalize.
Key Takeaway
Act quickly to share risk and recapitalize.
Themes
risk management
financial stability
stakeholder responsibility
Mood
concerned
urgent
Type
policy
financial.
When to use this quote
- bank board meetings
- regulatory reviews
- shareholder negotiations
- crisis simulations
Key Concepts
capital adequacy
recapitalization
systemic risk
Questions to Reflect On
- How can banks ensure all parties are willing to contribute?
- What safeguards prevent over-reliance on depositors?
A Different Perspective
If stakeholders lack resources, recapitalization may be impossible without external aid.
