The MSE Bank PLC By The People and For The People

Done

OK all you lovely MSE'rs, how about we start our own bank with a fairly basic set of rules:

Deposit and Savings accounts pay minimum 5% APR net.

Loans at 6% - 10% APR depending on fair credit score.

The MSE Bank PLC card at 15% AP maximum

Repayment only home loans based on affordability, terms up to 40 years with stepped ERC to re-stabilise housing.

Fees fixed at £5

Management wages capped, we are the shareholders.

Any profits rolled bank in to the pot.


No wild speculatation

Just trying to get things back to basics.......

izools

I give you 3-6 months before the bank is bankrupt; if you're lucky.

I see the loans being a loss leader at the very least as a very minuscule percentile of the population are credit worthy enough to be in the group that stand a 6% or less chance of defaulting. And even if you only passed those applicants on the credit score you would have to rely on there being no costs whatsoever in arranging the loan just to break even. And of course there are many many costs involved in arranging a loan.

It won't work.

Done

Appreciate your input, I can't see you opening an account! It's not about profit, it's about fairness. I am sure there are institutions out there that would like to invest. Just trying to remove the greed from the whole process.

Anybody else care to chip in?

zppp

Done wrote: »

OK all you lovely MSE'rs, how about we start our own bank with a fairly basic set of rules:

Deposit and Savings accounts pay minimum 5% APR net.

Loans at 6% - 10% APR depending on fair credit score.

The MSE Bank PLC card at 15% AP maximum

Repayment only home loans based on affordability, terms up to 40 years with stepped ERC to re-stabilise housing.

Fees fixed at £5

Management wages capped, we are the shareholders.

Any profits rolled bank in to the pot.


No wild speculatation

Just trying to get things back to basics.......

Done wrote: »

Appreciate your input, I can't see you opening an account! It's not about profit, it's about fairness. I am sure there are institutions out there that would like to invest. Just trying to remove the greed from the whole process.

Anybody else care to chip in?

Shareholders and yet no profit? Does this model already exist. Oh yes! They are called credit unions!!!!

Done

Any profits rolled bank in to the pot.

Derivative

It's not about profit, it's about fairness.

But you need to break even just to function. And profit to pay staff.
With savings at 5% and loans at 6%, that gives you 1% return. You're banking on less than 1 in 100 people making a late repayment.

Done

Loans at 6 to 10 %

zppp

Done wrote: »

Any profits rolled bank in to the pot.

Yep. Credit Unions.

From ABCUL;

Credit unions are owned and controlled by their members.

They are run ‘by the members, for the members’, so as a credit union member you have a real say in how your financial service provider operates.

As co-operatives credit unions are founded on the values of self-help and responsibility and self-organisation. Their top priority is to serve members’ interests. As well as offering accessible and affordable loans and savings products, credit unions are not driven to make money for external shareholders but have to make decisions in the best interest of their members.

Credit unions can only offer products to members

Each year credit union members elect a board of directors to represent their interests. The board then employs a manager or chief executive officer(CEO) who is responsible, with employees and volunteers, for the day-to-day management of the credit union.

The co-operative values and principles of credit unions mean members have full control of their own financial business, keeping the benefits in the community.

Done

Something with a bit more oomph than a credit union. A national peoples bank.

united66

This would be an amazing idea if it actually had any foundations and was actually feasible - unfortunately it isn't!

Done

Can you expand on your last answer please.