The MSE Bank PLC By The People and For The People

united66

Done wrote: »

Can you expand on your last answer please.

Can you please expand on your original post?
How you actually plan on going about this?

Olipro

Done wrote: »

Loans at 6 to 10 %

sounds wonderful, and how will that tie in with your Basel III capital pillars?

Lokolo

You also can't just give 5%+ savings accounts. Banks have to go about the Base Rate in someway or another.

Offering 5% accounts when base rate is at 0.5% wouldn't be appropriate.

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With only around a 2% basic profit margin on savings and loans. How would this pay for FSA authorisation, branches, telephone services, online services, product services (so cards, statements, letters to inform changes in T&Cs etc.)?

Example - with £10million in shorterm assets, would give a basic profit on savings and loans of £200k. This would pay for 10 staff......

Derivative

Done wrote: »

Loans at 6 to 10 %

10% for all is 'approaching' reasonable, if you had to pay no staff and had no reserve, as then you'll get a 4% return.

Anything less and you're just running a ponzi scheme, you won't be able to pay your savers.

Done

It's a work in progress, any moulding/adjustments/suggestions would be appreciated.

Mikeyorks

Have a word with David Cameron - he's intent on the same thing? But I think he has the edge as he's intent on blackmailing the Banks into giving him £200M as a start up deposit. As well as pinching £60M lying in dormant accounts.

Lokolo

Current Accounts should be offered but charged for.

Account Start Up Fee - £10

Monthly Fees -
Overdraft Under £1000 - £5
Overdraft Over £1000 - £10
Paper Statements - £1
Telephone Service - £2.50 (but 0800 number)
Online Service - free

What else eh?

To have savings etc. with the Bank of MSE, giving better rates than top 5 banks, customers must have a current account.

Done

Thanks Guys, I just posted it and was slated, It's not too bad an idea, perhaps it's TOO good!

Done

JuicyJesus

Another day, another stupid thread on MSE from someone who thinks they've got a great idea to fix the financial sector and "it's amazing nobody's done it before!"

It's not too bad an idea, perhaps it's TOO good!

No, it's an appalling idea that makes no financial sense, less sense from a credit/risk perspective and that basically means you have no chance of breaking even unless you've somehow managed to attain the Holy Grail and predict whether or not a customer will default or not at any point in the future.

You sound the same as that pillock who thought he could get a better return on his savings through the simple step of gimping the entire banking system and by extension the whole of the economy (or ineffectually threatening to). Have you considered forming a club?

zppp

Done wrote: »

Thanks Guys, I just posted it and was slated, It's not too bad an idea, perhaps it's TOO good!

Done

You weren't slated at all. I stated that credit unions exist already for the purposes you require.

Also, it is all high and mighty to suggest starting a bank, but in reality costs tens of millions of pounds, if not hundreds of millions to meet all of the regulatory requirements.