How do you structure a bank, so that if it were to fail, it would not touch taxpayers?"That's the question being asked and of course there's not one answer to that, and it's much more than just capital," said ANZ CEO Mike Smith at a Trans-Tasman Business Circle lunch in Melbourne yesterday."I think the interim report [of the FSI] was also a very considered document," he said."What has happened is, they're asking questions now - is this the appropriate type of control we need? Is it something we need more of? Is it something we need less of?"Things like ring-fencing, whilst the media have reacted to it in quite an excitable way - the issue there is how you protect deposits. "Now if you're a commercial bank, you have a very small investment banking business.""If you're an investment bank with a retail bank added on, it's a slightly different issue," Smith said."I think it depends on the institution and what's appropriate for a country like Australia which fundamentally has a very strong financial services system."There's been a bit of hang-up on loss absorption," he said.