Don't you just feel there is something wrong with the banking system in the UK?
It seems obvious that the four large private banks that dominate banking in the UK operate AGAINST the public interest, yet still demand rescue when their gambling goes wrong. How many times have they been caught out for mis-selling, over-charging, money-laundering, manipulating rates, fraud, etc etc. They are supposed to help businesses but often seem intent on scamming and overcharging them and closing them down at the least reason. All they seem to have learned from the last crash is that if their gambles go wrong, the taxpayer will rescue them. In the meantime, they are happy to pocket the bonuses "earned" by the profits of their manipulation, fraud and gambling.It's no wonder the enquiry into banking culture had to be abandoned.
But there is a different type of banking - a type of banking that works FOR the public interest and is 25% of banking worldwide and over 40% in such successful economies as Germany. But it is never talked about in the UK, and it is public banking. Public Banks are owned by our democratic institutions, but not operated by them. They are banks for whom profit maximisation is not the ultimate motivation but what most benefits the public. The are banks that are operated by public servants on salaries, with no bonus/fee/commission expectation, and, just like teachers and doctors, a desire to make society and people's lives better.
These banks can be owned by national, regional and local authorities as happens in Germany. They fund SME's, infrastructure, co-operative start-ups, public housing and green initiatives. The local banks in Germany, the Sparkasse, are not allowed to gamble in the financial markets and so did not suffer in the crash, continuing lending to SME's throughout and making recovery from the recession easier. The Sparkasse provide safe, inexpensive banking for the local administrations saving them millions and can provide inexpensive loans for projects that will pay for themselves, such as for public housing or green initiatives.
These Sparkasse type banks would be perfect for allowing the devolving city administrations to gain some financial independence from London and help local prosperity. As we can learn from the Bank of England and Positive Money, banks create money when they make loans, so local public banks provide locally generated money that helps the local economy. No inflation is caused as the money goes into the productive sector.