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"And if they are asked for more capital, then the possibilities of giving credit are limited".
Mr. King said Thursday that banks would not have to turn to taxpayers for more capital.
They will cause the industry to cast about for more capital, but there is no reliable source of supply.
Compared with larger peers, their earnings are less diversified and their arguments for more capital, private or public, less persuasive.
The V.C.'s thus control the company by ensuring that the founders will need to return for more capital.
He predicts there will be further bad debts on their lending books and the need for more capital injections.
The long-awaited results of the "stress tests" set off an immediate scramble by major institutions for more capital.
If he is forced to resort to the government for more capital, he will almost certainly have to go.
Last month's call by McKinsey for more capital from its partners should help it, for one, to take the longer-term view.
That would be the largest loss in Irish corporate history and could lead it back to the government to ask for more capital.
But perhaps the revival in economic confidence might persuade executives that the time is right for expansion, and for more capital spending.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com