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The economic literaure suggests that restrictive fiscal policies can compromise the stability of banking balances, leading to plans of recapitalization, liquidation and foreign acquisitions. If this reading is accepted, a critical reflection can be made on the new double role of the ECB, whose help is conditional on the adoption of austerity policies and it is now also the Single Supervisor of the European banking system.
The European central bank recently adopted a non-accommodating policy towards the liquidity requirements of Greek banks in difficulty. Many commentators however have pointed out that it acted in violation of the Bagehot rule, which says the role of the central bank should be provide liquidity to commercial banks considered illiquid but not insolvent.