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Stiglitz also recommends improving banking supervision, changing the international bankruptcy laws, reducing the number of I.M.F.
What it does not reflect is fundamental, structural reform, in any country in the region, though some progress has been made in improving banking supervision.
Also, it is improving banking and financial systems by lowering business taxes on banks and encouraging troubled banks to merge with healthier institutions.
Is this improving banking, or just the face of banking?
The correct policy is not capital controls but increasing the level of reserve and capital requirements and improving banking supervision.
The Conservatives are also examining other ideas for improving banking services and competition within the sector, such as allowing customers to take their account number with them to a new bank.
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Chile has been a leader in improving bank regulation.
Improving bank regulation may call for a little more stress.
And what role can technology play, both for improving banks' security and efficiency, but also for reaching their most remote customers?
The better response would be to concentrate on improving banks' capital ratios and liquidity cushions and, like the Swiss, give shareholders greater powers to stamp on greedy managements.
But when interest rates rise, as at some stage they must, so too will bankruptcies.If merging offers little chance of improving banks' profitability, why bother to do it?
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