If you are interested in the content of this blog then join us on Facebook and follow Radio Free Cornwall.

26.3.09

Cornish Banks

Cornish Credit Unions have been mentioned here along with other local scale economic projects but could Cornish Banks make a come back? This from nef:

The Government believes that the best way to revive the economy is to start from the top down. So it continues to throw public money at the ailing giants of the financial sector, hoping that they will start lending again. But a new report from nef argues that these measures do not strike at the real root of our economic problems: the failure of banks to perform the basic functions required of them.

Over the last three decades, banks have closed their high-street branches and withdrawn from less-wealthy communities in favour of setting up shop in the financial sector. The big banks have abandoned local economies and small businesses to pursue the more profitable business of speculative commercial banking. If we want to fix our economy, we now need banks which are 'fit for purpose': appropriately scaled to serve our communites and our small businesses, which still account for the majorirty of the UK's private sector jobs.

nef proposes a raft of measures to support community finance institutions and small businesses, from de-merging the big banks to creating a 'people's bank' at the Post Office. Instead of banks that are 'too big to fail' we now need an 'ecology of finance', made up of different sized institutions which each serve a specific area of the UK and international economy.

Read I.O.U.K.: Banking failure and how to build a fit financial sector

No comments: