The article explores how banks decide on the right amount of money to set aside for potential risks. This money, called risk capital, helps protect banks from financial trouble. The researchers looked at how risk capital affects the efficiency of banks in the Eurozone. They found that the size and type of risk capital can impact how well a bank operates, but this effect varies between different banking sectors. Ultimately, having the right amount of risk capital can help banks stay financially secure without sacrificing their effectiveness.