What exactly makes Community Banks different and so valuable
How does a COMMUNITY Bank differ in a better way from any of the big PRIVATE Banks?
In a nutshell they contribute rather than extract from the local economy. That has an enormous DOUBLEING effect on available investment funds locally.
The Hampshire bank1st and the Lancashire 2nd (followed by Yorkshire) Community Banks will each have: –
1) a full BOE banking license to compete on an even playing field with the big boys in their own High Street. In-fact because of the different ethos and main priorities they will be more competitive, offering better customer terms and they will not be closing branches.
2) They are 100% financed by their local council/university consortium (from their pension funds). These are classed as “Anchor Institutions” meaning they can’t sell up and relocate. And they give away 50% of the shares to another consortium of local charities. This protects it from being bought out later by a Private Bank. (it is possible for other types of “anchor institutions to invest also). The money will come from the various pension funds (managers are often looking for new secure ethical local investments).
2a) a Community Bank is still first and foremost a business and will return a sustainable profit, it would be no good to anyone if it didn’t. The Local-First Team comprises of some of the worlds most experienced international bankers with impeccable credentials.
3) They won’t pay big incentive bonuses and high wages to management and staff. Who will enjoy working there because they won’t have sales targets to meet? Understand banks are naturally the most profitable business on the high street without, the modern need to be greedy, they will operate “patient loans” meaning to run for as long as required. Directed specifically at small and start up business, and affordable social housing. Existing high street banks really aim to close down businesses. The private bank makes a greater profit asset striping businesses and individuals because the private banks are ONLY interested in Profit. They have no social conscience.
4) Here is THE very clever thing. A BoE license means “a Werner community Bank” will create its own NEW money against every loan, and instead of extracting that money out of the community to gamble away on high risk derivatives it will invest it back into the community to create extra local growth. (as a registered Community Interest Company)
In Germany 50% of their banks are Local Community Banks, which is why Germany is still the power house of Europe (in spite of having all its industry Bombed out 1939-45 and paying out $billions and $billions reparation costs to the rest of the world in 1945 and then absorbing and refinancing the vast bankrupt east Germany in the late 1980’s).
Almost all the UK was the same up to 200yrs ago. That’s why we could finance and create an Empire. Today we can’t even finance ourselves!!
But successive governments have allowed the old Savings Banks to be bought out by the aggressive Private Banks for their personal share-holder’s profit. The very last in the UK was Airdrie Savings Bank closed on the 28 Sept. 2017 All the main media portrayed it as sad but inevitable as unable to compete in the modern big world. Truth was it was totally unaffected by the banking crash and was going from strength to strength serving its own community and always in healthy profit. (But not keeping up with the GREEDY Boom and Bust banks, they were being managed prudently as a bank used to be, as Richard Werner’s team is re-creating them
YOU MUST understand fully here that not ALL what have come to be termed “Challenger Banks” are the same with ETHICAL aspirations even though they may claim to have. It is a hard task sorting the wheat from the chaff. Fact is all new banks not given birth by the LOCAL-first team in Winchester are children of the Corrupt greedy banking Industry regardless of what may be said. They are fatted calves being allowed to grow until fat enough for take-over by a BoE High street subsidiary (e.g. Lloyds or RBS).
I conducted a last-minute flurry of counter argument and objection but to no avail. All the main media looked the other way and were discouraged to become involved. Through general ignorance and complacency no one understood so never cared. Fact is now it’s gone the Big Banks can freely lobby parliament for the repeal of the 1849 Savings Bank Act (Scotland) Which protected it and others who may have come back into being before the new rules (being considered by the BoE). The new rules will stupidly encourage the Big Banks and strangle the little ones. And it will happen quietly because the majority of folk refuse to understand, nor want to. It is like global warming I regard them as “flat earthers”
The world over (where allowed) Community Banks can reverse the destructive austerity creating trend but (like you) insufficient folk know or understand. Which is why I am imploring you as thinking people help break the shackles of ignorance If you UNERSTAND the reality and talk about it to your contemporaries. It would make a BIG, Big Difference You really do owe it to your children and grandchildren because what is happening is contrary to common sense and is seriously impoverishing their future. The selfish politicians are taking the easy option and kicking the can further down the street to satisfy the political short termism. Leaving it for later generations to deal with! If they became aware that the general population had a full understanding and was knowledgably aware and openly discussing the likely remedy to most of the countries’ poverty issues. They Government may be embarrassed into changing things (IT WOULD ONLY COST THEM A RED FACE!
It has just been announced on radio 4 “Woman’s Hour”.as it so often does that ALL NHS areas of Social Care are vastly under-funded, this morning discussing the total inability for primary care staff to receive any continuation back up support for the young in mental health issues like serious eating disorders and self-harm, and support against suicide Entirely due the doctors say to a lack of GOVERNMENT money! (and those that understand now know that it shouldn’t be that way!
THINK ABOUT IT!
You KNOW it makes Sense