Policies to get banking oriented to customer benefit rather than profit.  Pointers on how to establish and run a Scottish Central Bank.

A Scottish central bank will need to be set up to oversee the creation of a new Scottish currency. It will be the competent authority providing regulatory oversight of the banking system.

Banking has lost its way, forgetting that it should be serving its customers and not exploiting them. But a mutually-owned People’s Bank can change this.

Video: 2:09 minutes

Considering only the retail sector, £80 million is removed from the Scottish economy each year in the form of transaction charges skimmed from ATM withdrawals, debit/credit card payments and other forms of transaction like Paypal and internet transfers.

he UK’s model of economic development is based on a unproductive sectors which generate vast profits through four particular methods – financial speculation, asset value inflation, debt-fuelled consumption, and concentration and monopoly.

This report argues that Scotland, if independent, could improve its performance across 12 key pillars of its economy.

A Consultation Submission to the Scottish Parliament’s Economy, Energy and Fair Work Committee asked for expert submissions on the ongoing work to establish a Scottish National Investment Bank.

― Taking a look at UK debt over the long-term shows that it is historically at a very low level. It is also incorrect to claim that we cannot afford the interest on debt.

― The reality is that there has rarely been a more favourable time for the UK Government to borrow in order to invest in renewing its infrastructure and fostering new industries.

KEY POINTS

― Immediate economy boost: We propose a 250 ScotPound (S£) dividend be given to each Scottish citizen, increasing the overall purchasing power within the economy. The injection of funds would not add to the UK deficit and we estimate the payment infrastructure of the system would be low cost – in the region of £3 million – all at a time of austerity.

― The SNIB’s overarching mandate should reflect a broader economic strategy developed in a democratic process, controlled by the Scottish Government, and reviewed periodically.

― The core activities of a SNIB should be to support investment in infrastructure and SMEs and to direct investment towards innovation for social and environmental objectives.

― The SNIB should be publicly owned but operated independent as a fully commercial entity, free of day-to-day political interference.

The report makes the case for:

Not-for-profit “People’s Banks” should be established in Scotland’s regions to offer banking services to local people and business.

Local banks would be part of a “People’s Banking Network” to share risk and cooperate on training, marketing and the operation of key services such as payments systems.