Are banks really worthy of taxpayer support? Given current bank regulations the answer must be NO!

If banks by means of efficient credit allocation to the real economy assist in generating sturdy sustainable economic growth, and thereby banks were fulfilling what I consider to be its primary social function, then of course banks should be supported.

But since currently the allocation of credit is distorted by the risk weighted capital requirements for banks, imposed by regulators who only want to turn banks into safe mattresses in which to deposit money, and who do not care one iota about credit allocation, there is no reason to support banks.

“A ship in harbor is safe, but that is not what ships are for.” (John Augustus Shedd, 1850-1926)

Dare ask: How many millions of small bank loans to SMEs and entrepreneurs, has the Basel Committee’s regulations impeded worldwide?