Mr. Matthew Elderfield:

One could argue this both ways, as there are pros and cons. One could also decide to accelerate and bring everything right now, because it is kicking the can. One might decide to get as much capital into one's banks as needed to enable them to start lending. That is a very plausible argument. However, if one is a stressed sovereign and the only way to do this is through borrowing, one might then decide this is not the best way in which to do it. Were one a supervisor in the United States with a triple-A rated country at one's back with lots of money, one would simply state one should err on the side of more injections in the short term and one's microprudential need for recapitalisation would trump any macroprudential concern. However, if one is in a situation in the eurozone with a stressed sovereign, one needs to make one's judgment about timing. It is a fair point and there are arguments both ways about the speed of it. However, because there is a debate under way on ESM recapitalisation, it makes sense to see how that emerges and work on the stress tests in parallel.