Alas, it may not, thanks to the third reason for the banks' malaise: the fragmented structure of Germany's domestic banking market.

ECONOMIST: There is no quick way out of the quagmire for Germany's banks

The bank has been on the prowl for U.S. assets, amid worry in Canada that the domestic banking market is headed for slower growth.

FORBES: New Federal Rules for Debt Collectors

They also gain access to a branch network and client list they could never afford to replicate, even after World Trade Organisation rules force China to open its domestic banking market fully from end-2006.

ECONOMIST: China's banking industry

Lloyds, once seen as a stable investment that paid high dividends and was consistently cash generative, is enamored with the task of writing down legacy assets from HBOS--with help from the British government's asset protection program--as well as rebuilding its presence in the U.K. domestic banking market.

FORBES: Banks

So the commission recommends higher standards only for the bits of the banking system that are rooted in the domestic market.

ECONOMIST: Banking reforms

Although Vietnam has two stockmarkets and a domestic bond market, its companies are still too reliant on a ramshackle state banking sector another parallel with China.

ECONOMIST: Vietnam's maiden international bond: Hanoi calling | The

As the domestic issues were generally resolved, through actions such as the banking bailout, the Spanish market was able to bounce back more sharply than many of its peers.

FORBES: Short Selling Bans: Are They Effective?

The proposals from Britain's Vickers Commission go a long way to deal with this, dividing a tightly regulated domestic banking system (the bit that puts taxpayers at risk) from a more freewheeling international market for global capital.

ECONOMIST: Global finance