Many experts found a formula to save the Banks and cut the « evil » forces which created the current international banking mess. They advocate to separate Retail/ Personal/ or Consumer banking from bank investment arms which is called Corporate/ business/ or investment Banking.
This solution is called “ring-fence rules”. Since 2009, Britain continue to discuss to make banks run retail banking operations as independent banks, almost entirely separate from their investment banking (higher-risk investment activities (“casino banking”)) and overseas operations, as the Bank of England made it clear that there will be no relaxation of the incoming ring-fencing rules.
Former Barclays chairman says: Bank ring-fence is redundant and should be scrapped.
We have better things to do than implement the ring-fence, says HSBC
The ring-fence rules apply to HSBC, Barclays, Royal Bank of Scotland, Lloyds Banking Group, Santander UK and the Co-operative Bank.
S&P warns ring-fence could turn UK investment banks into junk.
All banks are resisting efforts to split investment and retail banking on the grounds that it would cost billions to establish and reduce their profits.
Banks are avoiding and ignoring any reforms or public discussions on “ring-fence rules” aiming for the separation of investment and retail banking.
The media and the public are kept in the dark; and politicians who support such reforms are being undermined.
Post banks are very popular, secure, reliable, accessible and affordable type of retail/personal/ consumer banking. They are considered major financial services providers in many countries around the world. Japan, Germany, China, South Africa, and India have huge post banks.
Debate over re-instituting postal banking in the USA is heating up. Postal banks started in Great Britain in 1861 and, from the outset; the primary goal was financial inclusion. But in the U.S., postal banking had other uses as well. By 1934, postal banks had $1.2 billion in assets—about 10 percent of the entire commercial banking system—as small savers fled failing banks to the safety of a government-backed institution. Deposits also reached their peak in 1947 with almost $3.4 billion and 4 million users banking at their post offices. In 1965 postal banking in USA was ended.
Retail/personal/ consumer post banking can be established as independent public banks or operate as agents for private retail/personal/ consumer banks. They can greatly assist in separating Retail Banking from Corporate Banking, and provide accessible and affordable services for wide population.
This will, also, give the public postal system revenues to advance and expand their products and services. These services were abolished and ruined with IMF and World Bank policies in most developing countries. Now if anyone wants to send a parcel or transfer money they have to pay huge costs for foreign businesses that amount to theft.
Mobile banking could be great boost for national and international postal banking by introducing universal a single cash terminal/cashier in each suburb. All cash deposits and withdrawals could be made there, and these terminals/cashiers shall deliver and receive cash daily to and from different banks and businesses without the need for visiting banks and businesses branches. In this system, the area’s post office shall perform most of the functions of all cashiers for all banks and businesses at a fee. This shall reduce banking costs, create revenues, provide better and easier services, and expand and develop postal and courier products and quality.
Transforming Post banks into fully fledged retail banks with intensive mobile banking services and integration with postal, courier and saving systems are obvious and natural development goals.
Without separating Retail/ personal/ consumer Banking from Corporate / business Banking individuals always will carry risks and pay unfair costs to compensate for losses incurred from “casino banking” of Corporate / business Banks.
Many big Corporate / business Banks in America, Europe and the world bankrupted despite being supported by unseen revenues from Retail/ personal/ consumer banking.
It became very clear that No bank is too big to fail. So, the public must be very careful and don’t assume big international corporate banks are safer or better than local small Retail/ personal/ consumer banks. Post banks must be developed and encouraged to compete and go ahead forcing the Separation of investment and retail banking for the public and national interests and for financial stability and economy.
Post banks are very important in protecting people and economies from devastating financial crashes caused by casino banking practices.