The case for local banks

In the video below professor Richard Werner explains why local, small banks are important for a stable and prosperous economy.

Professor Werner argues that highly centralized, big banks favour big firms because that is most profitable for them. On the other hand small, locally rooted banks have more eyes for the need of the local economy and small firms.

Maybe it is an idea that banking licenses should only be valid in a small region instead of in the entire country.

5 thoughts on “The case for local banks”

  1. In another comment I told you that our bank gives free popcorn on Fridays. I forgot to mention it also gives us a free calendar. We just picked up our new one this morning. In fact we got two.
    Questions:
    1. Did they give us two calendars because we have so much money in their bank and are very grateful to us? 🙂
    2. Did they give us two calendars because we have so little money in their bank and they felt sorry for us? 😦

    1. I can’t answer that question for you. Both options seem plausible to me. Maybe the are just giving those because the like to do so, or as marketing strategy.

      1. I think it is because every year we bug them about the calendars every time we are in there. lol We start asking in July.
        They used to give a gala Christmas party. Big buffet and dance. That stopped about 6-7 years ago. 😦 They used to give a halfway decent rate on CDs and you checking account. That stopped 6-7 years ago too. 😦 😦 😦

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