Sorry OT re climate. On the eve of the release of the Banks Royal Commission reports I hear news that the banks are tightening loan requirements. Well if that happens to impair business’s and normal economic activity, the normal ability of people to raise loans. Then the Fed Govt could form a new Commonwealth owned bank and compete in the market as they saw fit. Or bring in more foreign banks to compete with big 4 a-holes.
Most States have had “State Banks” and there have been financial disasters but some have been well run.
But hey why not “Bank of Australia”.
It’s the moral hazard, Warwick.
If a Bank of Australia makes a bad loan, or a series of bad loans, the taxpayer bails it out (who else). So the management have no incentive of any force to avoid poor decisions.
If management do act cautiously, the public zitgeist will become ” … the little man is being ignored by the People’s Bank”.
The Future Fund has avoided this hazard precisely because it not required to make loan decisions, as against investment decisions.
I do expect to see a concerted effort to create such an institution (the People’s Bank), however. The attraction of funding from tax revenue is just so strong. Or perhaps mandating that super funds invest, say, 10% of their pot.
Maybe we could revisit THE BANK OF VICTORIA. ESTABLISHED IN 1853, this branch (see link) was in Vaughan. It went bust along with many other banks in the 1890s.
The State Savings Bank of Victoria was government owned and an honest dependable bank up until the Cain Kirner ALP governments ran it into the ground about one hundred years later.
wallerrealty.com.au/1430/23-burgoyne-street-vaughan
trove.nla.gov.au/newspaper/article/8549228/301265
I am sure Otto Neimeyer has passed on his baton.
Whoever Australia borrows from will dictate the rules of operation & all other government policy whichever brand.
We have always been a nett debtor nation.
You forgot your 2018 blog
Banks Royal Commission has Govt dead men walking
www.warwickhughes.com/blog/?p=5748
and the 2014 Murray Financial System Inquiry. David Murray was ex CBA boss.
Beachgirl, I think you are a bit tough on David Murray. I am sure he was a year behind be in the MBA course. I may have met him but I am sure most of the post graduates in the 2nd and 3rd year and the lectures thought he was a good student. I think he is 100% better than that political fool and economic dunce Ken Henry who has been named in the RC report.
As a share holder in CBA at the float I was happy with the performance although I have never banked with them except in the school days when they had the hopeless passbook system. In high school I swapped to the Bank of New South Wales where the tellers got to know everyone and respected you. A bank manager of BNSW was very helpful in my first home loan. At present I bank with ANZ and Suncorp. I like the security with the toggle with my Suncorp internet banking.
I have never sought financial advice from a bank but do look at the market information for share buying with ANZ Investing which used to be Etrade and hope ANZ will let it be independent again.
I run my own SMSF (as trustee) and am much more concern ed about the ALP tax policies which will hurt everyone that has shares personally or in a small super fund. I understand it will particular hurt female retirees, widows, and divorcees who may have some shares (such as CBA & Telstra from the floats)
Beachgirl, you should be concern by the lack of economic nouse of the ALP (Greens even worse)