This is a proposal that looks at a model that has worked very effectively in Germany, which actually has about 40% of the market share in that market.
The focus of the banks in this system would be on SME lending. Finance would be available for Working Capital, Investment and most importantly, Startup Finance.
This local public banks proposal would have 10 public banks managed independently, but with an identical business model and management principles throughout the 26 counties, with a rollout of the network over a full term of government, which would be 5 years. We’d like to see these banks established in the 6 counties also.
This system would see the establishment also of a centralised specialist unit to provide internal services including procurement, risk management and auditing. Earnings will be distributed between the costs of running the banks, strengthening capital bases and investing in local and regional projects.
This model would sit within the present banking model and those of the Credit Unions which are already such a huge success in Ireland. So, Local Banks for Local Business is about Sinn Féin looking positively at what can be done to help SME’s and everybody else out there.