Following a joint meeting (October 14-15) of the G20 nations and the International Monetary Fund, IMF Managing Director Christine Lagarde said that banks should seek their own recapitalization before demanding state intervention.

Speaking in a radio interview (Europe Radio One), she said the priority is for banks to get capital from shareholders “and as a last resort if these means were not available or sufficient, a more collective formula (should) be put in place including with the state intervening if necessary.”

During the weekend meeting in Washington, several countries asked for increased resources for the IMF for possible future needs. In September, Lagarde had raised concerns in her ‘Action Plan’ about the lending capacity of the IMF if it was called on to support member countries if the crisis persists.

“Our lending capacity of almost $400 billion looks comfortable today but pales in comparison with the potential financing needs of vulnerable countries and crisis bystanders.”  However she declared that in the current crisis the IMF still holds enough capital to assure support for affected countries.  

Lagarde also emphasized the need for "political determination" from European countries to tackle the current Eurozone crisis, reminding them that ‘’important decisions’’ would be taking place at the next European Council and Eurozone summit on October 23.