Jamie McIntyre Says "Make Australia Post a Government Bank to Compete Against The Big 4 Banks"
Posted on : 15-06-2009 | By : jamiemcintyre | In : Articles, Press Releases
Tags: australia post, big banks, CBA takeover, Jamie McIntyre, reserve bank
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Make Australia Post a Government Bank to compete against the big 4 banks.
CEO of the 21st Century Group says the Federal Government should immediately move to make Australia Post a Federally Funded Bank to compete against the major 4 banks, especially after CBA just raised their interest rates.
The Government can criticise banks all they want, but they have little to no power to stop them raising rates at will; not even the Reserve Bank has the power it used to.
And because they allowed the ACCC to approve the CBA takeover of Bank West, they have allowed one super large and arrogant bank to evolve that can throw its weight around and it is.
Australia Post already has retail outlets and already facilitates some basic banking functions such as, bill payments, so to move to a full bank is both realistic and possible.
It could be provided with Federal Funds to loan Australians home loans at lower rates then the major 4 banks forcing other banks to be more competitive and reducing their market share, meaning the Australia Post Bank would gain some of the huge profits banks now have boosting the benefits to tax payers even further.
At least serious consideration should be considered to the idea says Mr McIntyre who is one of Australia’s leading Educators and owner of a dozen companies including 21st Century Finance.
For a copy of my best Selling Book and DVD for free visit www.21stcenturyacademy.com
I invite you to comment in the area provided below.
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Dear Jamie,
I saw your media release today regarding an Australia Post bank, which is a very good idea.
You will be interested to know that the New Zealand Government set up a new bank, Kiwibank, about six or seven years ago, as all the major NZ banks were foreign (in fact Australian) owned.
The new bank is owned by New Zealand Post, and operates throughout NZ through Post Offices and agencies. It has about 600,000 accounts, and is growing at a rate of about 100,000 a year. It is also profitable, and has exercised an important influence in keeping the foreign-owned banks honest! We have run a number of articles on it over the years in our publication News Weekly (www.newsweekly.com.au), which you can search for all references over recent years.
Regards,
Peter Westmore
(President, National Civic Council)
Totally agree Jamie – the banks continually make record profits and are always crying poor mouth. The government and the RBA have no power at all when it comes to controlling the interest rates that banks charge. The banks need more competition and some form of indirect control mechanism to keep them honest. Turning Australia Post into a government bank is a great idea and I can’t believe it hasn’t been thought of before. Wether or not it will have a major impact on the big banks though is yet to be seen.
Regards
Anthony
I agree with Jamie: creating a decent competitor for big 4 bank is the way to go.
More education is needed to general public that: a bank, like other business entity, have a sole purpose to make profit for their shareholder and will not give a shit about welfare of people. (Compare it with your own business, profit is the goal) This is on of the fundamental principle of economics that runs the world. So, unless regulated by government (which mean affected the competitor as well) – bank will only act to improve their bottom line and critisize them will only show that you don’t understand how economics work.
But creating a gigantic competitor like Australia Post is a very interesting idea… It will threaten the market share of the banks and in turn they will need to be more competitive or lose market share…
Agree, it’s in line with art 51 of the Australian constitution which states that money creation is the prerogative of the Federal government through the commonwealth bank
They should never have given this constitutional privelege to the private banks who now create money out of nothing and loan it at interest rates. It explains why we live in an age of plenty and yet everybody is in debt. It has subjected the Australian people to modern slavery ever since.