Many banks were nationalized in 1960s and 70s to end crony capitalism and democratize capital.
However, government ownership of banks has now become a problem in 21st century.
As a consequence of government ownership, PSBs are made to share welfare burden of government.
Also, government interferes in major appointments and functioning of these PSBs.
So, has banks nationalization which was a solution in 1960s and 70s not become a problem now??
Does this also reflect the changing nature of economy, from state heavy model to more free markets?
What can be the solutions to this problem?