Friday, June 22, 2012

New banks needed in the UK

At a well attended seminar in the Thatcher Room, Portcullis House at the Houses of Parliament, under the chairmanship of David Davis MP for Haltemprice and Howden a variety of new developments in banking and funding were aired on 18th June 2012. The event was arranged by Cut-Loose (Robin & Fiona Brownsell) and Civitas.  
Subject: 'Removing Obstacles to Competition in Banking' 

Simon Dixon leads  Bank to the Future a 'crowd-funding' idea and you can see him explain it on the link. It puts people with ideas for a new venture in touch with people with money wanting to put it to use. It doesn't include credit creation, which would multiply funds they may have. Bruce Davis of Abundance  runs a similar firm which links people who need investment for renewable energy with those wanting a good cash and eco-positive return on their money. Again it uses existing money, without any leverage of credit creation.  Both of these provide through web-based services a 21st century version of the 17th and 18th century coffee houses frequented by those who wanted to get a new enterprise going. Although your coffee drinking partner now may be hundreds of miles away.

James Berry of Bristol Credit Union (one of the largest in the UK) puts savers in touch with those needing funds and can provide small loans for business as well as loans for people urgently needing cash and not having access to reasonable interest rates. They help a particularly needy group. They do not multiply their funds with credit creation as true banks do.   

Bruce Cahan of Good Bank USA wants to interest people in the UK in his ideas of  high transparency, ethical banking so that you can see where and how your money is being used. A feature of the peer-to-peer lending of the above firms.

Alex Templeton is part of a group which is trying to start a county-based bank with a full banking licence (credit creation permitted). To be based on 'not-for profit' principles with the recycling of retained profits for local investment and causes. 

Mark  Lloyd is Cambridge County Council CEO.  CCC with Trinity Hall have just founded a new local bank Cambridge & Counties Bank. See this blog for Tuesday June12, 2012. Dave Fishwick was at the seminar: The Bank of Dave see the Channel 4 programme shortly. Ian Lucas MP for Wrexham attended and spoke, as did John Redwood MP for Wokingham 

With new banking and investment activity the economy can start recovering from the bottom up: that is, from the level of the firm and entrepreneur. A vastly increased money supply into productive but not asset-speculative schemes is needed to boost the UK economy safely. Many new banks are needed to create this supply, as clearly existing banks are not doing enough. Through painstaking work at the level of the local bank manager and staff the economy will kick-start. Monday's meeting, whilst highly successful for the sponsors, represented a drop in the ocean for the amount of new credit needed.
See these short videos on: banking and the economy to see how credit creation works, and: local banks shape the economy.    
posted by Charles Bazlinton
extra to para 6 23.06.12

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