Greens call for a separation between retail & commercial banking

The Green Party has announced proposals that would lead to a clear separation between retail and commercial banking proposals, that they say, that would lead to a banking system that will serve the interests of citizens and the businesses they build and work for include:

• A clear separation of retail and commercial or so-called 'casino' banking;
• All derivatives and complex financial products to be subjected to a social usefulness test;
• Retain stakes in taxpayer-owned banks and transfer their assets to a network of community banks.
• A network of public, not-for-profit community banks that would support the development of community economies by providing local businesses with low-cost funding.

Green Party Finance speaker and lead South West European candidate Cllr Molly Scott Cato on announcing the proposals said:

“The Green Party believes that we urgently need a separation between essential day-to-day banking activities relating to households and businesses and banking activities relating to financial markets which are inherently more unstable. It is disappointing to see Labour taking such a feeble line. . The banking catastrophe is not an example of a failing market that can be saved by a little more competition. Nothing short of determined political action to separate retail and commercial banking and the introduction of a test of social usefulness for financial products can protect society from another banking crisis and ensure that this most vital sector works for the common good.”