Thinking aloud - A new banking system

Hi all.

This might go down like a lead balloon, but I think its worth a try as I want to change the world, not for any personal benefit or recognition, but to serve humanity well in going forward. I trust us!...

....Sooooo I've been thinking, is it actually possible to start a new banking system. A local bank. The simple idea is just like any other bank you take peoples money, loan it out bring the money back in....greedy yeah? ....well not really, what if say 90%-100% of the profits could go back into the community, the area the bank is based in?

Could a system be created where the bank does the above except when it comes to profits it promises to invest it back into the community?

I would love a bank like this in my area, I'd pull all my money out of the big banks and move it into one like this, and I'm sure many others would too. Just think if you live in a small city, and this small city bank promised to take a large proportion of the profits and in turn, use these profits to do something like:

- Fit solar panels on every customers house.
- Build a new sports facility
- Invest the money into a local hospital
- Pay a salary for an extra home carer
- Upgrade bus services

Obviously at the moment it's just a pipe dream, but in all honesty I have to ask....


Is it possible?

apparently you've never heard of a credit union, go join one now.

Originally posted by liquidsmoke206
apparently you've never heard of a credit union, go join one now.

Are they in England?

Ahh just checked, seems they are! Great news...going have to see how "safe", "reliable" & "accesible" they are here!

When I first saw your title, I thought "hey, this may be something I could get into".

As I read down I like the idea of pulling all our money out of the big banks.

As to putting it into a small local bank. That too is a good idea.

For my money, what little I have, I think I will stop at the "pull it all out" point. Even a local bank, if you can find one is not interested enough,IMO, in the general welfare of it's community after profits. I don't really blame them, it's called business, and making more profits is the name of the game.

For several years I lived on a "cash-only" bases. I am not going to say anything about easy and do not want to talk about my families opinion of my actions. I simply got tired of always oweing somebody money every week.

I did finally spring for a new house and it will be paid off at the end of next year. Paid 30 year mortage in 9 years.

I tried as long as I could hold out to an "only American " policy. "If an American don't make it-- an American don't need to buy it!"

Now I have as more Chinese Junk than any Chiny-man.

I will stop now before I get too wound up.

I can't help but wonder how things would turnout if WE ALL adopted these same two ideals, for a while at least

Good luck with your pipedream! I would hedge a bet the banking cartels would not allow such nonsense. I do like your idea though but as someone mentioned try a credit union. I have belonged to one for years.

I am one who refuses to do business with ANY bank if I can get away with it. Of course I have a mortgage through a bank but I'm not behind! I get my paychecks direct deposited into the account at the credit union as does my wife.
If I receive a check I try to cash it from the bank it is drawn from. Try that with a cashiers check worth several thousand dollars. The bank doesn't like to give out a large amount of cash like that in one transaction.They expect you to deposit in your account and let their little behind the scenes things happen.

I'm sorry I just do not trust banks in anyway.

Originally posted by Tangled2011
Hi all.

This might go down like a lead balloon, but I think its worth a try as I want to change the world, not for any personal benefit or recognition, but to serve humanity well in going forward. I trust us!...

....Sooooo I've been thinking, is it actually possible to start a new banking system. A local bank. The simple idea is just like any other bank you take peoples money, loan it out bring the money back in....greedy yeah? ....well not really, what if say 90%-100% of the profits could go back into the community, the area the bank is based in?

Could a system be created where the bank does the above except when it comes to profits it promises to invest it back into the community?

I would love a bank like this in my area, I'd pull all my money out of the big banks and move it into one like this, and I'm sure many others would too. Just think if you live in a small city, and this small city bank promised to take a large proportion of the profits and in turn, use these profits to do something like:

- Fit solar panels on every customers house.
- Build a new sports facility
- Invest the money into a local hospital
- Pay a salary for an extra home carer
- Upgrade bus services

Obviously at the moment it's just a pipe dream, but in all honesty I have to ask....


Is it possible?

edit on 16-11-2011 by Tangled2011 because: (no reason given)

edit on 16-11-2011 by Tangled2011 because: (no reason given)

You seem to be suggesting some form of credit union which focuses the majority of its attention upon sharing and promoting the general welfare of all people. Unfortunately, your idea removes the ability of the credit union to make money via credit by just building stuff for people instead of having them take loans out and pay it back.

I agree that societies should operate in a manner that makes everyone's life better by doing things like helping everyone get on solar power or something, but unfortunately most people will not be on board with that concept (though who says you need the majority?). The vast majority of people want to excel and get out what they put in, and they frown on those who were unable to attain what they did, yet who dare ask for help. Such people neglect to realize that if everyone's standard of living goes up, then everyone's standard of living goes up (including their own).

Maybe your idea could work if you managed to find enough like-minded people? In the meantime, maybe some of your ideas would best be served through charity work? By that I mean, why not just start up a charity which has the sole purpose of trying to get every person in the world (who wishes it) on independent alternative power? Ask for donations and just go out and start installing the stuff for those who want it. It will take forever, but eventually, everyone will be on it and you will have done one little thing to change the world.

The same principle could be used for alternative fuels for vehicles. Instead of waiting for the government to change things, just go out and start offering to convert people free of charge. Your biggest obstacle there is getting people to donate money or time, but which do you think is more likely to produce results: looking for charity or getting government to move?

If everyone would just do something like that for one person, we wouldn't even need banks.

That, my friend, is the way banking was orginally --- and not that long ago. These banks made loans that would stay on their books so they shouldered the risk. Where things went horribly worng was when banks were allowed to 'sell' loans and debt. There was no longer any incentive to really vet a person's ability to repay a loan since the bank would be selling it and kicking that can down the road. So they began acting like loan mills --- get the upfront fees and off-load the problems. Sweet!

But even THAT wasn't good enough. So they used their influence to lobby government to allow them to leverage their deposits more and more. And finally, the last straw if you will, they got their friends in government to allow them to invest on Wall Street in order to make the big bucks. Becasue they could make so much more money gambling on WS there was little incentive to make potentially risky loans... and here we are.

The fact that we appranetly learned nothing from the Savings and Loan collapse is telling. Credit Unions and community banking is the way to go.