Society/Culture Would a government bank be good to have?

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The CBA was privatised in the 90s
It seems to me if the government had their / we had our own bank again interest rates could be kept down in line with Reserve Bank rates and maybe it could be run ethically. As the pollies are saying they should be doing this and that but thay can't make them, if banks had to compete with one that was doing the right thing by its customers, maybe they would do the same?
 

Thegibbsgamble

I beg to meg
Oct 28, 2017
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Breaking laws gets more revenue for marketing. More revenue for bribes, more revenue to fund criminals to deal with your opposition.
 

M Malice

Hall of Famer
Aug 31, 2015
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By the Gabba.
AFL Club
Brisbane Lions
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Valleys. Chelsea.
I don't agree with everything the CEC says but I like their ideas re the banking/finance sector.
https://cecaust.com.au/policies/banking-finance

The banking and financial system must serve people and the real economy. Banks should not speculate with deposits and exploit their customers, but should safeguard deposits and provide credit for individuals, farms and businesses. The CEC will separate traditional banking from speculation, stop the bail-in of deposits, avert a housing and financial crisis by auditing the banks to restructure their debt while keeping families in their homes through a foreclosure moratorium, and establish a national bank to direct credit into public infrastructure and productive industries.

The video is a couple of years old and long but worth a watch if you have time.



Never going to happen though, way too many vested interests worldwide and we are an extremely small fish in a massive ocean.
 

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Apr 24, 2013
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Arden Street Hill
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North Melbourne
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Essendon Lawn Bowls Club
Despite it being a logical idea. I’m sure it would be less efficient and cost more than a private bank

Huh? Not if it was a non profit service fee based bank.

Banks should exist to service the people, not make profits.
 
Oct 6, 2013
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Sixers, Exers, GWS Womens
I reckon having one big government bank would force the private sector to be more competitive and help with the effectiveness of reserve bank rates.

Think it's a good idea
 
Anyone remember what it was like to have government owned businesses? It was mayhem with poor services, poor innovation, unhappy workers and strike after strike

Anyone remember the seamless roll out of the NBN?


Government can’t even properly regulate the banks (ASIC) and yet we think they could run one?

The govt is better off taking 40% risk free than shooting for 100% and failure
 
Apart from the government running the Reserve Bank, what other purpose would another government run bank be?
Would it be run at a profit or a loss?
The main banks have been in need of commissions to investigate their behaviour and pollies are saying they should be reducing interest rates but they aren't [plus closing branches and overpaying CEOs etc] so if there was competition which was behaving properly, hopefully they would follow suit. I use Bendigo Bank myself and they seem better.
 

HurleyHepsHird

Ghost Stories for the End of the World
Oct 2, 2011
6,606
9,178
Between the Lines
AFL Club
West Coast
Yes, or more particularly state level "community banks".

One of Australia's primary economic problems is lack of access to liquidity for small and medium businesses. It stifles innovation, drives startups offshore, destroys domestic ownership of industries, pushes up costs/encourages monopolies, leads to the collapse of whole sectors of the economy and encourages asset bubbles.
 
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