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This is what's up with banks

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I would think there is some competition law that would say they cannot prevent you from banking elsewhere too.

 

There is also the Data Protection Act that states a company can only view a customers details for certain reasons. A credit check is a valid reason to gather info about a persons banking elsewhere....to merely ensure that they retain 100% of the clients custom is certainly not.

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The divisions may be separate, but if the retail customers weren't providing deposits, the banks would have no means to make money with which to trade, if that is what you are saying the money the banks do use to trade comes from. Money deposited doesn't get stored in a vault does it? The point of a bank is to act as an intermediary in financial markets, so the depositor gets a per centage of the return on the interest made by the bank by lending the money. It's not rocket science.

 

fractional reserve banking is commonplace.

 

http://www.basicincome.com/basic_banks.htm

nothing has changed.

 

A government that borrows with interest from private banks, when it can create its own interest-free money, is a government of idiots or thieves.

Edited by syne

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http://www.bbc.co.uk/news/business-14831156

 

This is what I was referring to.

 

PS - All governments borrow from private lenders, they do it by creating gilts (on which they set the interest rate) which they then sell (I'd guess that in the UK they sell it to the central bank). It is effectively a way of printing money, but less destabilising (and inflationary) than literally just doing that.

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Oh so people dont actually buy shares in banks then. People dont actually use investment accounts then? Businesses dont have deposit accounts then? variable source savings accounts? Pension trusts? Local council and government investment schemes?

 

There is far more income to banks than just current account customers :roll:

 

It's a fair point. I still think retail customers are taken for a ride though because the spread between borrowing and lending interest rates for those particular customers is absurd.

 

It would just be good to know exactly what customer money is used for, in a transparent way.

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