Get It Off Your Chest


Fine fcuking Gael never saw it as that. No bank was taken over by state appointed staff. You are wrong on this.


Ok so how is a state bank supposed to work different from a private bank?
How will it be capitalized?
What will the governance structure be to prevent political interference?
Will it need to comply with Central Bank and ECB regulations?


It will be capitalised by deposits and lend within its means. Of course it will be subject to regulation. Interference by whom?


Agree. I was shocked at first and had sympathy. But it was a brass neck orchestration. She kitterslly doesn’t give a flying ■■■■. I guess that’s part of the problem is that you have these people completely depended on the state and they don’t want to contribute in any meaningful way. A case I shout the fucking loudest and I’ll get what I want.


I’m sure he has ‘turned’ his life around.


So it will act No different from a commercial bank so what’s the point. Btw capital is required separate from deposits that is locked away, to do this in a state bank this funding would need to come from the tax payer. It will not prevent reckless lending if anything the political influence/pressure will encourage it. Such a bank would also need to go to the capital market to lend and borrow money, this again bring a level of risk to tax payers.

Back to my original point I have no issue with the state supporting micro lending to people and maybe small business but they have no business being running a fully fledged bank.


All of that post is untrue. Every word.


Are you Donald trump? you can’t point out any inaccuracies so you just post one line crap giving your view based on nothing as fact.

There are easier ways to bow out on an argument when you don’t know what your talking about then that.


do banks not need to only keep a figure set by the central bank in deposits and can loan out the rest, generally around 10%? What are the capital requirements?


The point would be to provide finance at cost to the public. And is there not a European Investment Bank or some sort that it can and could access finance through? Or via ECB or similar and then loan at rhat rate (less costs)?


9% of the balance sheet under bassil II regulation is put aside as a capital requirement. This can not be made up of deposits or borrowings, so it’s made up or shareholder contribution and or retained earning. This is expected to increase to 12% I haven’t looked at Basel III but it might be contained in that. Separately the central bank and ECB have regulations determine the deposit to loan ratios, reporting non performing loans etc.


thanks for that. Didn’t know there was additional capital requirements. Do they still have to retain a portion of deposits as well?


European investment banks doesn’t finance bank. It will look at draw downs to provide capital for for small business lending schemes but 90% of what it does goes to large scale infrastructure projects.


The shareholders would be the people. It would behave quite differently from a commercial bank as it would not be trying to make a profit.


And outside Cuba where has this actually been sustainable?

This model has been tried and failed 100s of times and envairiable the Bank becomes inefficient or politically influenced and it fails or is privatized.

ACCA and ICC are two relative successes but they did not need to have full banking licenses and had a very specific objectives. A similar set up in a non bank structure could get EIB investment but it will create allot of headaches for a government and investment in people, IT… which I can’t see being popular.

For me the biggest issue in retail banking are the Barriers to entry for foreign banks, I suspect we will move to a cross country selling in the EU. This would help the consumer no end.


Credit Unions?


We are talking about banks not all financial institutions are banks. CU are a good example or institution working becouse they focus an a specific area. However we have still seen numerious of these going bang due to over extending themselves.


Think this country has problems…


Where and when was ‘the model trialled and failed hundreds of times’?


And when the perpetrators are caught we’ll get the usual sob stories. Brought up in a deprived area etc… and a suspended sentence handed down

Pity little fucks like this can’t be given a year or two of breaking rocks