In my view, the solution is to be found in returning the state to its role of providing a framework in which the private sector can operate. This means a return to the role the founding fathers of the social market economy had in mind.
They knew that good banking regulation is a key element of a well-designed framework for a well-functioning banking industry and a proper market economy in general. The problem is, however, how to achieve such a return to fundamental concepts of a welldesigned market economy. This is not at all easy.