Post Offices should become mini-banks 'of honest lending'

[TrueBlueTerrier]

Post Offices should become mini-banks 'of honest lending' say campaigners

http://www.telegraph.co.uk/news/uknews/ ... gners.html" onclick="window.open(this.href);return false;

Post offices should be turned into mini-banks "of honest lending" offering loans to small firms, campaigners and pension fund managers will say.

Unions, small firms and pensioners groups want to transform thousands of branches into new Post Banks. The plans will be launched at the House of Commons at a reception on Tuesday night.

Under the plans, the country's 11,500 post offices would be given powers to lend to small firms and run basic bank accounts for customers.

Other plans also include giving branches the right to issue "green bonds", allowing customers to invest in environmental-friendly business opportunities.

The campaigners said the plans would offer customers a return to "honest lending". Executive pay of senior directors of the Post Bank would be capped and bonuses restricted, they said.

Billy Hayes, CWU general secretary, said: "The Post Bank is the right proposal at the right time politically and industrially. "It answers the needs of the financially excluded and will appeal to many in this time of economic uncertainty. The Government must move swiftly to endorse this timely proposal."

John Wright, National Chairman of the Federation of Small Businesses, suggested that the extra business for the new Post Banks would create 11,000 new jobs.

The proposals for a nation-wide chain of Post Banks are understood to be privately supported by ministers. Pat McFadden, the Post Office minister, is speaking at the launch.

[smokerjim]

An excellent idea, if it doesn't get screwed up powerful people with lots of fat liittle fingers in lots of lucrative pies....... sorry, just woke up after a doze.

[ajohnstone]

See my earlier post about Girobank sell -off and how the BBC ( and the rest of the media it seem) so easily forget history .