London ( CNN ) -- So finally , after long drawn out negotiations , German Chancellor Angela Merkel and French President Nicolas Sarkozy seem to have reached some consensus on the recapitalization of European banks . However , they are unable to give us the blueprint of the agreement until the end of the month , just ahead of the G20 meeting in Cannes in early November . And it is not yet clear if the other 15 eurozone member countries will agree on the plans . This is nail-biting stuff -- the world really does not have time to wait . This financial crisis is more to do with the strength and stability of the banks than it has to do with Greece or any other philandering economy . If the banks are well capitalized , then the storm can be ridden through . But the longer the European Union takes to make decisions about sovereign debt the more damaged the banks will become . The strong banks will want to attract fresh private capital and the weak will be reliant of public and taxpayers ' money . It has become increasingly clear is that there are far too many banks in Europe . This crisis provides a classic opportunity to cut the number of banks by at least 30 % . The EU should use its powers to force distressed banks into the arms of those banks with solid balance sheets . Clients and customers of banks not capable of meeting their financial obligations due to the toxic state of their balance sheets must be protected , with their assets and liabilities being transferred to safe havens -- regardless of the potential damage to existing shareholders . Beyond Greece , banks in Italy and Spain are in need of rationalization because of the respective size of their economies . For instance , the assets of the vulnerable cajas must be swept up by the four main Spanish banks . In Germany there are also far too many landesbanks , or savings banks . Some are very strong , but there are plenty which have no place independently going forward . Quick action will restore confidence . The model used by the UK government to protect the customers of Bradford & Bingley should probably be adopted as the norm in the next few years . If a bank 's situation looks dire it should be closed and the business dissolved into : `` The First Bank in Boot Hill . '' The banking industry is likely to look totally different in 10 years time . The large banks will be focused on corporate and investment banking and investment management , and retail banking will be dominated by large cash rich companies . Look at General Electric -- it has a decent banking base . Why could n't the likes of Tesco , Vodafone , and even Apple provide the best banking services imaginable ? These companies ' attention to the analysis of customer relations management is superb . They understand the nuances and foibles of retailer better than any other sector by a country mile . Surely our money would be very safe in these very competent hands ? This may not happen soon , but it 's possible in the future . Meanwhile , Belgian 's government has agreed to pay â‚¬4.5 billion for the retail banking business of Dexia bank , a dominant municipality lender . Belgium , France and Luxembourg leaders have drawn up a guarantee for Dexia 's interbank and bond funding , of up to â‚¬90 billion over 10 years . The markets are now waiting for results from other banks , including JPMorgan 's on Thursday . Next week , Goldman Sachs will be in the spotlight . The opinions expressed in this commentary are solely those of David Buik .
The German and French leaders seem to have reached some agreement on European banks ' recapitalization . But there is no consensus around the issue , and the world does not have time to wait . There are too many banks in Europe , and the weak ones will be broken up , or fail .