Let's produce for export markets
WE need profitable banks. To have profitable banks we need a vibrant economy in which investors borrow money to invest in innovation and machinery that increase the flow of consumer goods into the market -- a market that has consumers with good earning power.
The entrepreneur needs to earn a profit that services the debt and gives a surplus, and the depositor needs a reasonable return.
The government policy of not nationalising the banks and instead giving a wide guarantee and bailing them out has been a more costly option that will increase taxation and means a vibrant economy is decades away.