Why we need a new system:
The current Commercial Banking System failed comprehensively,
- It has left us with enormous debts, prolonged austerity and a social crisis that will take decades to repair.
- It is self serving; it prioritises the interests and profits of its private owners and shareholders.
- Nothing has changed; few safeguards have been introduced to prevent a recurrence of 2008.
- The commercial banks enjoy the guarantee of a bail-in the next time they fail.
- Just three banks have over 90% of the market, such concentration means less competition and greater vulnerability.
- It continually takes between 30% & 40% of the profits of the entire domestic economy.
- They poorly serve small & medium size businesses (SME’s) that provide 70% of all jobs.
- It is a system of control. Private banks have near-total control of Ireland’s credit money supply. They decide the sectoral allocation of credit and precisely who gets it.
- Your savings are not safe in the commercial banks because 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.
We have a Choice:
- We can follow current government policy and continue to restore the 3 bailed-out too-big-to-fail commercial banks, keeping the failed oligopoly going. (AIB; 99% state owned, on life-support & owes us what..€20.8bn? The BoI essentially told government to butt out. So they may, ‘they’re a private entity’) or
- We can, for a total of €140m over a five year period, establish 10 safe, solvent and ethical Regional Public Banks with the explicit purpose of serving local businesses, communities and households. The Credit Unions and Post Offices can play a key role in providing the Community Banking System we need. The Credit Unions need to look at radical survival options as their future is under serious threat.
The Project is Progressing:
The Public Banking Forum of Ireland (PBFI) launched this project in 2013. A comprehensive Concept Document for the Irish Public Banking System has been produced by the German Public Savings Bank non profit Foundation the SBFIC. The SBFIC are currently assisting with 32 projects in 31 countries, worldwide. Work on the Business Plan, Operational Plan and Legal Structure for the Irish Public Banking System will be completed when our fundraising target of €250,000 has been reached. Three political parties and two political alliances now support variants of public banking. ISME, BRUI and ISBA also support the project.