Problem Definition
40. The problem the government needs to address in relation to the DGS is how to now exit from it. That is, should exit take place as is currently the case in October 2010 or should there be an extension of the DGS and if so, on what terms. Exit needs to be managed in a way that enables the financial system to carry forward avoiding as far as possible any unnecessary damage (economic, financial stability and fiscal) along with enabling the required amount of adjustment, including firm exits and mergers, necessary for a stronger financial (namely non-bank) sector going forward.
