How should the afflicted banks be re-capitalised?

The financial crisis has shown that the capital reserves of many banks were too small. Ulrich van Suntum and Cordelius Ilgmann, University of Münster, point out that the capital banks have on their balance sheets, both in the euro area and the US, is now even greater than before the financial crisis. But this is no cause for an "all clear" signal since the capital reserve ratios before the crisis proved to be too small to prevent systemic breakdowns. The flaw of the German bad-bank model is that participation is voluntary and that banks have shown little interest in this model. Instead, with regard to the bad-bank solution one should turn to the already used instrument in Germany of equalisation claims. In the opinion of Wolfgang Hönig, formerly of Commerzbank AG, Frankfurt, one necessity is to improve the quality of the rating agencies. Another is that the state should subject the system-relevant German banks to stress tests to see if they need to be or are capable of being restructured. The B banks identified in this process should then be officially restructured. This should not be left to the discretion of the banking officials. Also Stephan Götzl, GVB (Genossenschaftsverband Bayern), would like to obligate the afflicted banks to take on state aid. In the future, the framework conditions should be set such that that the banks cannot become too "systemic" - i.e., too large, complex, opaque or international - to be allowed to go bankrupt. It must be possible for a bank to exit the market.