We need private banks

The recapitalization of Greek banks, following the debt swap deal earlier this year, is a very important issue that needs to be sorted out as soon as possible. Also, it must be tackled in an efficient manner.

Finding a solution is not easy, even less so in light of the surging populism and fanaticism we are currently witnessing in this country.

However, one thing is certain: The real economy cannot operate without a healthy banking system.

Some people, it seems, would like to see all of Greece?s banks come under state control. That would be a nightmarish scenario, for it would enable Greek politicians to perpetuate the patron-client system and use lenders as a tool to promote and protect the interests of their cronies.

Greece needs private banks. But it also needs strong independent authorities to supervise them and to serve that crucial role in economic recovery.

Recapitalizing Greece?s private banks cannot be postponed much longer.