Banks play a vital role in any modern economy and, indeed, in our everyday lives. We simply could not manage without them. Entrepreneurs, bankers and individuals alike: we all benefit from a stable banking and financial system. Financial stability is therefore a public good, not just nationally but also globally.
At the same time, banking can sometimes involve external effects. It does not just affect banks and their business associates; it also has an impact on third parties with no stake in the game. During the financial crisis, those third parties were the taxpayers.