Friday 6 March 2009

We can't go back to 'bad banks'

With all the discussion of 'good' and 'bad' banks - see the excellent posts by Terry McDonough on this site and Karl Whelan at irisheconomy.ie - it is worth considering some of the other elements involved in a good bank other than simply a strong asset base. Because if all we do is restore AIB and BOI to their positions before the crisis, then we do not necessarily get 'good banks' that will support economic development.

More on the background to bank lending and state financing of businesses here.

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