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Only adequate recapitalisation of the banks is likely to stop them inflicting further pain on an already slowing economy, write Brian Lucey, Gregory Connor, Valerio Poti, Mark Hutchinson, Niall O'Sullivan, Patrick McCabeand Cal Muckley

THE DEBATE on bank recapitalisation appears to have moved on in recent weeks. At first, bankers denied the need for it, now, there is a denial that it will be useful. The gist of the argument against recapitalisation is that it will not make credit more available. The argument is that companies, and the economy, will have to accept an indefinite credit famine from Irish banks. The main thrust of the argument is that lower lending will be determined by the need for lower loan-to-deposit ratios, so that increasing bank capital will not help.