Bank merger another step in right direction

The government’s announcement this week that it will merge three state-run banks is another step in the right direction towards fixing the beleaguered banking system, following on from the recapitalisation programme and the strengthened bankruptcy code. But there is still more work to do. In particular, it is important for the economy’s long-run health that the practices that led to the build-up of bad debt are not allowed to reappear.