Public banking is not essential

Only essential services should be guaranteed by the state. And whilst it will always be a controversial discussion very few people hold the view that public banking is something which is essential. Since very few people argue that the market is incapable of providing banking then we can deduce that the state should not protect failing banks and that there should be no deposit insurance. The concept of deposit insurance (and all state subsidies) relies on the assumption that society is better off with a particular service being provided to all (for free). But there is no reason to think that people need subsidised banking... since there is no reason to subsidise banks then they should be free to fail since it is expensive to subsidise banks. Unless deposit insurance is required it should not exist because it is a cost to the taxpayer and hence society. Only essential services should be subsidised (because to do so is expensive) and since the market is able to provide good banking there should be no reason to have deposit insurance.