Royal Mail - A Banking Facility?

We understand that a number or representations are being made to the Government to give Royal Mail and the network of Post Offices their own banking facilities.
 
In short a Post Office Bank!
 
The argument is that if we set up a National new bank with the post office it already has the post office network to create branches around the country.
 
Hang on a minute!
 
Isn't the Post Office in the Process of closing over 6,000 of these branches because they are of no use to it and a drain on the Post Office and public purse?
 
Well blow me down - yes it is!
 
I know, we could actually call the new bank if it is ever set up the Giro Bank!
 
Woa.....bit of a Ground Hog Day moment there -
 
Did not the Post Office used to own its own bank called Giro Bank?
 
Well blow me down again - yes it did!!!!
 
So, what became of Giro Bank?
 
It was sold off because it was of no use to the Post Office as it did not have the expertise to run an effective Bank; not only that it brought in loads of money for the Government of the day when it was sold.

The Trouble is that while Banks Procrastinate for their own benefit and the Government half heartedly brings in schemes that no one knows how to operate - things will never get better!

Let's face it. There are loads of Bankers out there now without jobs, so the Post Office could presumably take on suitably qualified employees to run such a bank and in truth it could be good for communities.
 
But only the communities that have a bloody Post Office
 
Perhaps someone somewhere will eventually realise that the number of closures of Post Offices was a backward step and that they could be put to profitable use if only they delivered the services that people want.
 
To the Government we say!
 
Go Ahead with the Post Office Bank - but do it properly and let it cater for small business banking with full clearing system facilities and then it would work and force the other banks to start lending.
 
What the banking sector needs top get it lending again is COMPETITION!
 
Some one NEW in that market place to start taking their market from them!
 
Don't you understand this Gordon / Alistair?
 
It's quite simple really - Take the Power from the Banks
 
Here are some ideas for you to chew over at your dinners with the great and the good who have still not come up with any plausible idea to save jobs and get money flowing again!
 
Give loan facilities back to local councils for mortgages!
 
Let councils lend the money they have sat in bank accounts to first time buyers and local people wanting to buy tier own home - BUT NOT FROM THE COUNCIL OR SOCIAL HOUSING RENTAL STOCK!
 
Let councils run the Enterprise Loan Scheme
 
Take it away from the Banks as they don't really want to operate it. They don't like using the Small Firms Loan Guarantee Scheme as it is, never mind bringing in this other scheme.
 
The banks are only interested in rebuilding their liquidity ratio's and that means less lending unless they have cast iron guarantees.
 
The banks will only lend at the moment to Triple A rated businesses and they want extra collateral as security for any loan they now give. I have been told recently by a bank manager in Cumbria that he is now paid bonuses on the amount of security he get for any loan granted.
 
He no longer wins bonuses for selling loans to businesses and individuals on the amount of lending provided. Only on the security he has been able to pull in to back the lending!
 
Does that not mean there will be potentially more homeless people if the loan goes bad due to the current climate as this extra security is brought into the equation? Small business owners now forced to put up their houses as security for even the smallest of lending could find themselves in deep trouble.
 
This is why the Government set up the Small Firms Loan Guarantee - and it is precisely why the banks don't like is and use is as little as they can.
 
Surely someone in Whitehall can think of these things and get the ball rolling?
 
After All - The only sector growing is the Public Sector and the only sector (apart from banking) winning bonuses, is the Public sector. But is it delivering?
 
I don't think so!
 
Ed.