Context: While India warms to the idea of bank privatization, a public bank movement is in vogue in the United States.
Benefits of government presence in the banking sector: A case for public banks
Problems associated with government presence in the banking sector: A case for private banks
Conclusion: Ideally, a banking system should be an optimal mix of public and private banks as public banks are better at performing payment services function while private banks are better at performing lending functions.