The Public Banking Alliance and its 2016 Election Campaign came about as a result of a negative response from the Minster for Finance to an appeal from the Public Banking Forum of Ireland (PBFI) to the Minster to introduce or support the introduction of a Public Banking System to Ireland.
The Public Banking Alliance is made up of 2016 General Election Candidates who support the Public Banking initiative, i.e. to introduce a comprehensive Regional Community Banking System to Ireland.
With the the main objectives of,
- Supporting Small Businesses and families
- Strengthening and empowering communities
- Providing safety for depositors
In Ireland Small and Medium Size Businesses (SME’s) provide 70% of all our jobs. The Minster saw no contradiction in telling us that he was fully satisfied borrowing money from a German Public Bank, the KfW, channeling it through the Strategic Investment Corporation of Ireland and own-wards to the Irish Commercial Banks, for them to on-lend to Irish SME’s.
The interest being paid to the KfW probably would setup a Public Bank here.
He also stated there was a suppressed demand for SME financing, while Q4, 2015 ISME members survey shows SME demand for funding at 35% and a refusal rate of 48%. ISME represents 9,500 SME’s. ISME Link:
Unsecured Lenders:
The Current situation with the Commercial Banks is that your savings are not safe in them; depositors are classed as unsecured lenders to the bank. Recently in the Cyprus Bail-in the banks took 47.5% of depositor’s money over €100k.
The PBFI saw no alternative but to work to put public representatives in the Dáil who support the Regional Public Banking project and will work to introduce a Public Banking System that will properly support the crucial SME sector and the regions.
We invite all to join and support this vital project.
AIB, Bank of Ireland, Irish Permanent, Ulster Bank Rabobank and KBC are the only banks licensed by the Central Bank to take deposits at a low interest rate and lend on at a higher rate. They act as a monopoly because their lending rates are all similar e.g. all mortgage rates are approximately 4%. This is 2% higher than the 2% rate in other Euro area countries. The Minister of Finance and the Governor of the Central Bank are unwilling to do anything about this. To them the small number of shareholders of the banks are more important than the thousands of mortgage holders who find their monthly repayments almost doubled.