...A vast majority of attendees thought that sovereign support for domestic systemically important banks (D-SIFIs) remained as likely as before, or at least still highly probable, despite the coming resolution tools being introduced to deal with failing banks (chart 1). The sentiment was somewhat more positive than that published by Fitch in a recent report named Sovereign Support for Banks March 2014 particularly for Denmark and Finland; the latter being a Eurozone country. In contrast, Fitch believes that support will ultimately remain highly probable only in Sweden, having been the strongest flexibility advocate during European bank resolution discussions, although new regulations mean support decisions will be more constrained....
