Peoples Bank

hinault

With the demise of PostBank, what do members think about the idea of a called the People Bank?

We have a physical infrastructure in place via An Post network : we also have a financial structure in place called PostBank.

Instead of propping up Anglo Irish bank with billions of euro - why can't the goverment and the people not decide to create a Peoples Bank for a lot less capital investment?

By setting up a people's bank, this would allow credit to start flowing again.

Worth considering?

ei.sdraob

PostBank wasnt owned by AnPost and were separate to them

but yes the infrastructure is there, and as I mentioned in another thread the opposition want to setup a recovery fund

the whole thing would be much cheaper/better option than continuing to pour money into Anglo

we also have a network of credit unions who have trust and respect of the people and connections with local communities, as I mentioned in another thread before, these could have been used to restart lending from the bottom up

but no, all of that would be just too sensible


edit: regarding Postbank this is interesting

On 5 October 2006 An Post signed a final agreement for the creation of a joint venture with Fortis to provide financial services through the Post Office network. The new venture will offer a range of financial products and services to the Irish market, including daily banking, savings products, insurance, mortgages and credit cards.[6] PostPoint and the company's insurance business, One Direct, will become part of the new company, which will have access to the Post Office network.[7]
On 29 April 2007 a press launch was held for the new bank, which is to be known as Postbank. (legally Postbank Ireland Limited, to distinguish from other similarly named operations such as Deutsche Postbank). The bank's savings and investment products include Solid Saver and Sure Investor. On 12 May 2008 Postbank launched a current account.
Postbank is now a 50:50 venture between An Post and BNP Paribas. They offer current accounts, savings accounts, fixed term deposits, credit cards (VISAs in association with MBNA), along with home and car insurance, and life assurance (term and Over 50s).
The closure of the Postbank unit was announced on 26 February 2010. No new customers are being accepted as of this date, and the operation is due to be wound down by the end of December 2010.[8]

last I dealt with Postbank they were under Fortis's wing

its very interesting to read about how the Belgian government deal with the fall of Fortis (something that should have been done in Ireland with Anglo!)

they were sold to BNP Paribas who then wound down the Irish operation this year, BNP is here @ #9

The_Honeybadger

hinault wrote: »

With the demise of PostBank, what do members think about the idea of a called the People Bank?

We have a physical infrastructure in place via An Post network : we also have a financial structure in place called PostBank.

Instead of propping up Anglo Irish bank with billions of euro - why can't the goverment and the people not decide to create a Peoples Bank for a lot less capital investment?

By setting up a people's bank, this would allow credit to start flowing again.

Worth considering?

You mean a credit union, they are owned by their members and are therefore a peoples bank? My local one is advertising for business loans, wonder if it is a publicity stunt or if they are actually willing to give capital to new businesses.

bijapos

ei.sdraob wrote: »

we also have a network of credit unions who have trust and respect of the people and connections with local communities, as I mentioned in another thread before, these could have been used to restart lending from the bottom up

but no, all of that would be just too sensible

These are being used to lend credit. Namely to their members, not just to every Tom Dick and Harry who walks in off the street. Lending is highly regulated, normally no more than 3 times your balance and those in the credit union usually know their members (customers).

I don't know if you are suggesting that they lend to those who feel they need money and have no track record in the union. If so this would be irresponsible. If someone wants money from the credit union then go there, open an account and talk to those who run it.

ei.sdraob

bijapos wrote: »

These are being used to lend credit. Namely to their members, not just to every Tom Dick and Harry who walks in off the street. Lending is highly regulated, normally no more than 3 times your balance and those in the credit union usually know their members (customers).

I don't know if you are suggesting that they lend to those who feel they need money and have no track record in the union. If so this would be irresponsible. If someone wants money from the credit union then go there, open an account and talk to those who run it.

not at all

i cant find the thread now, but the idea was that the credit unions know who they lend to and do lend are very carefully

they also have the trust and confidence of the people, something that the main banks have lost

also if any loans go bad that reflects very badly on the defaulter, and the person can be named and shamed locally

the money handed over to Anglo could have been made available to credit unions in order to lend from the bottom up skipping all the bankers and fat cats, and staying locally

Idbatterim

What about we set up a state run bank and use the deposits to bail us out instead of the bond market. Would that be an option? It would also be able to dictate savings and loan rates. It could keep the existing banks completely in line.

Laminations

Idbatterim wrote: »

What about we set up a state run bank and use the deposits to bail us out instead of the bond market. Would that be an option? It would also be able to dictate savings and loan rates. It could keep the existing banks completely in line.

It would have been. Many things would have been an option, right up until the guvment nationalised Anglo and took all their debt and liability and put it onto the taxpayer. And now our options are very limited.