The "willingness and ability of the government to support the banking system" is the central question of the Financial System Inquiry, Moody's Investors Service highlighted in a note yesterday."The authorities appear to see both positives and negatives in bail-in provisions," Moody's said."APRA states that although statutory bail-in is attractive because it provides a means to transfer the risk of a bank failure away from the public sector to the bank's own creditors, it carries costs and risks. "APRA therefore does not advocate any particular framework for loss-absorbing and recapitalisation capacity at this time, given that the nuances of different approaches are not yet well understood."The RBA is in line with APRA.Moody's said the RBA cautioned that "bailing in unsecured senior creditors could reduce the fiscal cost of a systemically important bank's resolution, but carries the risks of deepening the institution's financial distress and spurring contagion to the broader financial system."It also states that to date, there are few, if any, examples of banks that have successfully been resolved as going concerns through the use of bail-in powers, and recommends that the design and use of bail-in policy options be approached cautiously."These statements are in line with Australian authorities' previous comments and underline the more cautious evolution of their views, Moody's concluded.