{"id":1186,"date":"2017-11-29T14:40:19","date_gmt":"2017-11-29T14:40:19","guid":{"rendered":"http:\/\/republicirelandbank.com\/?p=1186"},"modified":"2017-11-29T14:40:19","modified_gmt":"2017-11-29T14:40:19","slug":"pbfi-newsletter-nov-2017-communitypublic-banking","status":"publish","type":"post","link":"https:\/\/republicirelandbank.com\/?p=1186","title":{"rendered":"PBFI Newsletter – Nov 2017 – Community\/Public Banking"},"content":{"rendered":"\n\n\n
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Seamus Maye PBFI Joint Chairman & Harald Felzen from the Sparkassen Foundation the SBFIC<\/strong><\/p>\n

Joined Sean O’Rourke on RTE Radio 1,<\/strong><\/p>\n

Tuesday morning 21st Nov. for a debate on Public Banking.<\/strong><\/p>\n

\u00a0Click on Image for 14min Debate or watch >>\u00a0Here<\/a><\/strong><\/p>\n

They discussed<\/strong><\/p>\n

\u2022\u00a0Public Banking –<\/p>\n

\u2022\u00a0The German Sparkassen Public Bank Model Vs Ireland’s 3 Commercial Bank monopoly.<\/p>\n

\u2022\u00a0Interest Rates; Ireland Vs Germany.<\/p>\n

\u2022\u00a0The Credit Unions – Unfair perception & media coverage; Only 1% of CUs had issues Vs complete collapse of our Commercial Banks.<\/p>\n

\u2022\u00a0The PBFI solution involving the Credit Unions & Post Offices.<\/p>\n<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
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The Info Graphic above shows that the same price house in Germany would cost \u20ac121k less; Interest is 17.45% of the Principle in Germany Vs 60.25% in Ireland.<\/p>\n<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
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Comprehensive Public Banking System Proposed for Ireland:<\/strong><\/h2>\n

Presented to Finance Committee 12\/10\/17<\/h2>\n

Public Banking Presentations Start at\u00a02:27:00<\/strong>\u00a0of Oirechtas Video.<\/p>\n

Link to Oirechtas Video >>\u00a0here<\/a>\u00a0<\/span><\/strong>
\n<\/span><\/a><\/h3>\n

Committee Chairman<\/strong>\u00a0John McGuinness TD<\/p>\n

Presentations:<\/strong><\/h3>\n

\u2022\u00a0Joint Presentation by Irish Rural Link and SBFIC (Sparkassen Foundation)<\/strong><\/p>\n

Niclaus Bergman CEO of SBFIC & Seamus Boland IRL<\/p>\n

\u2022\u00a0Presentation by The Public Banking Forum of Ireland (PBFI)<\/strong><\/p>\n

Seamus Maye – Joint Chairman & Spokesperson for the PBFI<\/p>\n

The start times of PBFI contributions were;<\/p>\n

\u2022\u00a0Presentation at 2:44:30<\/p>\n

\u2022\u00a0through Chair at 3:41:00<\/p>\n

\u2022\u00a0through Chair at 4:9:00 (Seamus speaks on the Kiwi(Post)Bank model for An Post & the Post Office network)<\/p>\n<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
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Creating Ireland’s Alternative Banking Force – PBFI Preliminary Proposal Launched March 2017<\/h2>\n

\u00a0The Graphic below is the basis of the PBFI Proposal.\u00a0<\/strong><\/p>\n

The PBFI envisions an extensive role for the Credit Unions & the Post Offices in the new system:<\/p>\n<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
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Read ‘Creating Ireland’s Alternative Banking Force’ >>\u00a0Here<\/a><\/strong><\/p>\n<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
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PBFI Joint-Chairman Seamus Maye speaking in EU Parliament –<\/h2>\n

The Need for Community Banking in Ireland<\/a><\/h2>\n<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
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Minister of State Ring Consultation on Local Community Banking<\/h2>\n

The PBFI submitted its Preliminary Proposal\u00a0\u201cCreating Ireland\u2019s Alternative Banking Force\u201d to the consultation process.<\/p>\n

PBFI Submission click >>\u00a0here<\/a>\u00a0<\/span><\/strong><\/p>\n

This document will be updated shortly after planned meetings with key stakeholders.<\/p>\n<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
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An Post & the Post Office Network have options:<\/h2>\n

An Post & the Post Office network also have the option of developing\u00a0the Kiwi(Post)Bank model as proposed by the PBFI in Aug 2017. (See proposal below)<\/p>\n<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
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PBFI Proposal on the Future of Post Offices and An Post:<\/h2>\n

Issued by the Public Banking Forum of Ireland 28\/8\/2017<\/strong><\/p>\n

Some 500 to 700 Post Offices are in immediate danger of closure and An Post\u2019s future is precarious. However, there is light at the end of the tunnel if Government, An Post & the Postmasters are willing to embrace it.<\/p>\n

The launch of An Post\u2019s NEW Smart Current Account is a significant development and could be the important first step in securing the future of the Post Offices & An Post.<\/p>\n

Yes, An Post is now offering their own Current Accounts. This development has the potential for so much more if progressed along the lines of the Kiwi (Post) Bank in New Zealand. Established in 2002 Kiwi (Post) Bank now has over 12% of the overall banking market on the island of 4 million people, a model which could be replicated in the Republic of Ireland.<\/p>\n

This concept<\/strong> has already been presented to the D\u00e1il and was passed. The motion, outlined hereunder, was placed on behalf of the Rural Independent Group by Mattie McGrath TD & Michael Healy-Rae TD. The Rural Independent Group also includes Michael Collins TD, Noel Grealish TD, Michael Harty TD, Danny Healy-Rae TD & Michael Lowry TD.<\/p>\n

Post Office Network: Motion<\/strong>\u00a0[Private Members] Wednesday, 16 November 2016
\n\u2014 implement a new community banking service operated by An Post to be made available in all post offices throughout the country – this post community bank should be based on either the New Zealand Kiwibank model or the German Sparkassen model, both of which have been found to be valid models;<\/p>\n

Ellen Brown,<\/strong>\u00a0President, Founder and Senior Advisor of the U.S. Public Banking Institute had the following to say in her article<\/p>\n

\u2018The Kiwibank Model: Postal Banks to Serve Local Communities\u2019 –<\/strong><\/p>\n

\u201c\u2026 Postal banks are now thriving in New Zealand, not as a historical artifact but as a popular new innovation. When they were instituted in 2002, it was not to save the Post Office but to save New Zealand families and small businesses from big-bank predators. By 2001, Australian mega-banks controlled some 80% of New Zealand\u2019s retail banking. Profits went abroad and were maximized by closing less profitable branches, especially in rural areas. The result was to place hardships on many New Zealand families and small businesses.
\nSuddenly, New Zealanders had a choice in banking. In an early \u201cmove your money\u201d campaign, they voted with their feet. In an island nation of only 4 million people, in its first five years Kiwibank attracted 500,000 customers away from the big banks. It consistently earns the nation\u2019s highest customer satisfaction ratings, forcing the Australia-owned banks to improve their service in order to compete.\u201d<\/p>\n

 <\/p>\n

The Kiwi (Post) Bank option<\/strong>\u00a0is possibly the last chance to save Ireland\u2019s Post Offices & An Post. Rising stamp\/postal cost prices are not sufficient to save them; the problem is much bigger.<\/p>\n

We must consider that in Ireland the Commercial Banks have over 95% of the market, whereas in Germany the Commercial Banks including Deutsche Bank & Commerzbank AG have only 12% of the market. 70% of German Banking is provided by Community Banks, lending locally to the productive economy, without engaging in speculation or securitisation. Community Banks in Germany have a 200 year history; they have built & continue to fund the 4th biggest economy in the world and have never needed any taxpayer\u2019s money.<\/p>\n

There is no reason<\/strong>\u00a0why An Post & the Post Office network could not take its rightful share of the banking market in Ireland and secure their future. Your local Post Office could become your local community bank and part of the proposed comprehensive publicly owned banking network which would include SME focused Community Banks and also the Credit Unions, together providing an alternative and competition to the current commercial banking monopoly.<\/p>\n

Please lobby your local political representative to support, promote and implement this initiative before it is too late.<\/strong><\/p>\n

The PBFI also propose<\/strong>\u00a0that An Post Bank become the primary administrator of Mortgage Credit for first time buyers of the average priced house, for those on the average wage. This service can be provided for a nominal percentage administration fee as opposed to charging interest for the life of the mortgage.<\/p>\n

The current mortgage process<\/strong>\u00a0works as follows; the customer signs a \u2018loan contract\u2019, legally this is considered to be a \u2018promissory note\u2019 (a promise-to-pay or a security), the bank is purchasing this security. It then owes the customer the said amount in the contract; but the bank does not pay-out. They just record it as a \u2018credit\u2019 in the record of their debts. No money is transferred from elsewhere.(1) The bank simply types this \u2018credit\u2019 into an account for the customer. We use this credit as money and the bank charges interest on it.\u00a0The bank puts nothing of actual value into the transaction.\u00a0The only value in the transaction is provided by the customers \u2018promise to pay\u2019.<\/p>\n

The banks are essentially gouging huge sums of interest payments from the public for merely administering the nation\u2019s credit, on which they have a total monopoly.<\/p>\n

Lessons must be learned from the crash of 2008<\/strong>\u00a0and the subsequent private commercial bank bail-out; a recurrence, or the export of another generation is not an option. The current private commercial banking system fully controls our credit system and thereby controls and shapes our economy. We desperately need a banking system that works in the public interest and supports the local economy, as opposed to the current risk-prone, profit-maximising and shareholder return focused commercial banking duopoly.<\/p>\n

PBFI Executive:<\/strong><\/p>\n

Website:\u00a0www.RepublicIrelandBank.com<\/a>
\nE-mail: admin@republicirelandbank.com
\nTwitter:\u00a0@IrlPublicBanks<\/a><\/p>\n

\n1. Reference\u00a0Professor Richard Werner 2014\/2016:<\/a><\/p>\n

End<\/p>\n<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
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Prof. Richard Werner – Dublin Conference –<\/strong><\/h2>\n

Banking Industry Exposed<\/strong><\/h2>\n

&<\/strong><\/h2>\n

Solutions Presented<\/strong><\/h2>\n

April 2016<\/strong><\/h2>\n

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Link to Conference Video:<\/strong><\/h3>\n

Prof. Richard Werner – Dublin Conference<\/a><\/h3>\n<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
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Link to Video:<\/strong>\u00a0Prof. Richard Werner – Dublin Conference<\/a><\/p>\n<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
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Financial Institutions that Serve the Real Economy.<\/h2>\n

Dr Thomas Keidel,<\/h3>\n

German Savings Banks Association DSGV<\/h3>\n

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12 min Video >>\u00a0\u00a0YouTube\u00a0<\/a><\/h3>\n

 <\/p>\n

What drove the Financial Crisis?<\/a><\/h3>\n

A Banking crisis into a Sovereign debt crisis.<\/a><\/h3>\n

Dr Thomas Keidel –<\/h3>\n

the German Sparkassen Savings Bank Association.<\/h3>\n<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
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The PBFI\u00a0Website<\/a><\/strong>\u00a0www.RepublicIrelandBank.com<\/a><\/h3>\n<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
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Local Public Banking System for Ireland \u2018Concept Document\u2019 has had a limited\u00a0released.<\/h2>\n

The \u2018Concept Document\u2019 for the Local Public Banking System for Ireland is now with the Department of Finance and the Political Parties. Public banking is in the current programme\u00a0for government.\u00a0<\/strong><\/p>\n

An excellent document produced by the Savings Bank Foundation for International Co-operation (SBFIC). The SBFIC is the not-for-profit foundation and is part of the German Public Savings Bank Group, the Sparkassen. The Sparkassen has 403 independent Public Banks in Germany with 15,000 branches and 50 million customers. They supply 75% of all start-up lending to SMEs and are the backbone of the German economy.<\/p>\n

The not-for-profit SBFIC assists countries worldwide<\/strong>\u00a0to setup or develop their Public Banks similar to the 200 year old, proven, German Sparkassen system. Currently they are working on 5 Public Bank projects in Europe and on 32 projects in 31 developing countries worldwide.<\/p>\n<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
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The Current System in Ireland:<\/h2>\n

Today in Ireland, three banks have over 95% of the market. Banking is now more concentrated than it was before the crisis. These banks now have the guarantee of a Bail-in should they falter again.<\/p>\n

When will we be held to ransom again?<\/p>\n

The actual\u00a0cost of\u00a0sustaining the current financial system.\u00a0Prof Steve Keen<\/h2>\n

Extract below taken from\u00a0Chris Menon’s interview with Prof Steve Keen<\/p>\n

Link to Video Interview.<\/a><\/p>\n

Q. Much of the reforms that you recommend are predicated on reform of the banking sector, cutting the banking sector down to size. How realistic is that given the nexus between the political class and the banks\u2026.?<\/p>\n

Professor Steve Keen<\/p>\n

A. \u201cWe have to break that political nexus, it\u2019s false, because the reality is, finance is a cost of doing business; it\u2019s not a profit centre. Finance of course has to make a profit in its own right to be viable;\u00a0you need a financially successful profitable banking sector. But you don\u2019t need one that\u2019s 30 and 40% of the profits of the economy, because at that level it\u2019s actually syphoning off money being generated in the real production, of the industrial sector, the agricultural sector and the mineral sectors.\u00a0Ultimately the financial sector should be the servant of the rest of the economy not the master.<\/span> But at the moment it\u2019s the master of not just the economy but of the politicians as well.\u00a0So to break the nexus, we need a complete political shift\u2026..\u201c<\/p>\n<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
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The PBFI – Banking in the Public Interest!<\/h3>\n<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n

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