# Public Banking for Ireland



## Public Bank (3 Feb 2014)

Hi All,
I'm new to the forum. I work with a voluntary group The Public Banking Forum of Ireland just formed in 2012. We are working to introduce Public Banks to Ireland. (Full reserve banking) Germany has 64% Public Banks & 40% of all banks are Public Banks.
Public Banks are
1.	Operated on commercial principles with the aim of maximising sustainable lending and not on maximising profits.
2.	Operated on the Principle of “Local deposits into local loans” keeping capital in their own area.
3.	Surpluses remain with the Bank & within the region: Profits are used to 	increase equity and for non-profit purposes (the public benefit principle).
4.	Banned from engaging in financial speculation.
5.	Only allowed to lend only to local people and businesses in its designated catchment area.
6.	Controlled by stakeholders from the local community.
7.	Independent of political influence and control.
8.     The Joint Liability Scheme provides protection for all Savings Bank Branches.

We are holding a seminar "Public Banking for Ireland" in The Green Isle Hotel on 27th Feb 2pm. Please Google us Public Banking Forum of Ireland. Sorry I'm new to forum so can't post URLs (Republic Ireland Bank .com) Come back with questions or comments. A network of Public Banks could go a long way to sorting our problems. 
Thanks, Regards Gerry


----------



## Brendan Burgess (4 Feb 2014)

Do we not have these already in Ireland, it's just that we call them Credit Unions?


----------



## Bronte (4 Feb 2014)

Hi Public Bank, I think all competition is good in the banking sector, so can you tell us more about your operation and who and what you are 

I googled it and came up with this

http://republicirelandbank.com/

For example are you American or German, looks very American to me, that's not a negative, would just like to know, and you've links to the Ballyhea says no campaign.  I find the website a bit evangelical.  Irish people have been dupeed by a lot of fly by nighters since the crash so maybe you'll clarify how you are different.


----------



## callybags (4 Feb 2014)

It sounds great, but as Brendan has said, this is what credit unions were specifically designed for.

Also, are points 4 and 5 not directly in conflict with each other?


----------



## Jim2007 (4 Feb 2014)

Public Bank said:


> (Full reserve banking) Germany has 64% Public Banks & 40% of all banks are Public Banks.



You are sadly misinformed.... German Sparkassen are about the same as credit unions here and consequentially you could say that today Irish public banks far outnumber private banks, if it makes you happy 



Public Bank said:


> Public Banks are
> 1.	Operated on commercial principles with the aim of maximising sustainable lending and not on maximising profits.
> 2.	Operated on the Principle of “Local deposits into local loans” keeping capital in their own area.
> 3.	Surpluses remain with the Bank & within the region: Profits are used to 	increase equity and for non-profit purposes (the public benefit principle).
> 5.	Only allowed to lend only to local people and businesses in its designated catchment area.



Are you actually aware that this is not possible under Full Reserve Banking???



Public Bank said:


> 7.	Independent of political influence and control.



Since you are subject to banking legislation the same as everyone else, this is nonsense!



Public Bank said:


> 8.     The Joint Liability Scheme provides protection for all Savings Bank Branches.



If you were operating as Full Reserve Banking there would be no need for such a scheme as there would be no lending or prop risks!

Gerry, do you appreciate that everyone quoted on your website has one thing in common - they all want to sell you something: a book, advertising off their blog or TV show and so on.


----------



## Public Bank (25 Nov 2014)

Folks, I owe everyone an apology. 
The Public Banks are not full reserve banks. They operate fractional reserve lending banking like commercial banks but on a much more conservative basis. They keep 15% in reserve & fractional reserve at a ratio of 6:1 on the 85%. Commercial banks are supposed to keep 10/12% in reserve & FR lend on the remainder @ ratio of 10:1. (If only they’d adhered to that!)
 The Public Banks differ from commercial banks as it says in # 3. Surpluses remain with the Bank & within the region: Profits are used to increase equity of the Public Bank and for non-profit purposes (the public benefit principle - funding is given to the community for social projects). No Shareholders looking for dividends.

In response to ‘Jim 2007’:
The German Public Savings Banks comprises of 417 Banks with a total of 15,000 Branches. Germany also has over 1,000 Co-op banks. Ireland essentially has 2/3 Banks with a complete monopoly on the market.
The Credit Unions can never be any real competition for the commercial banks because they cannot fractional reserve lend. Also they are being regulated out of existence. The CU funds (approx €10bn) are in the commercial banks, propping them up. The banks are paying the CUs pittens in interest, fractional reserve lending on their funds at 10:1 and lending at interest rates of 5 to 14%. (Nice work if you can get it!) 

Things have move on considerably since Feb 2014 post. The Public Banking Forum of Ireland has had The Savings Bank Foundation for International Cooperation SBFIC (A non-profit section of the Sparkassen Group) in Ireland several times. They are currently writing a ‘Concept Paper’ for an Irish Public Banking System. This Paper will be ready in January and will be presented to the Dáil finance committee. 

Thanks everyone for your comments. Please continue to comment. Thanks, Gerry


----------

