In Britain what would happen if the government opened a nationalised bank?So let's say the Bank of England was a state owned bank. And you could then open an account with that bank. What would happen to the privately owned banks? would a state owned bank be better off? |
You clearly haven't been paying attention.
The Bank of England is state owned (just like the Fed in the U.S.) and if you are a big enough company you can open an account there (just like the Fed).
And yet there are plenty of private banks in both the U.S. and the U.K. Surprise!
So why would a nationalized bank drive out the privately owned banks? Does it lend money at lower interest rates? does it offer higher interest rates for deposits? If not, why would private banks see it as a threat?
In Japan, the government run post office operates as a bank.
http://www.slate.com/articles/news_and_p...
http://en.wikipedia.org/wiki/Japan_Post
http://www.atimes.com/atimes/Japan/MD01D...
There is a U.K. postal service bank, but it is more limited and so not as much a threat to private banks.
http://en.wikipedia.org/wiki/Postal_savings_system
