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“We can decentralise power in our monetary system by abandoning the big banks and instead creating and supporting local not-for-profit community banks ...”

Richard A. Werner, 2017


Modern banking is broken. The incentives are all wrong. Neither major banks nor the national central banks that control the money supply take their responsibility for the economy’s health seriously. Their incentives twist their mission.

Economies with concentrated banking systems tend to produce uneven economic development with boom-bust cycles and increasing inequality. Decentralised banking systems consisting of many small local banks, tend to have thriving communities, high job creation, low unemployment, lower inequality and resilience to external shocks, as well as fewer financial and economic crises.

Community banks have a long and remarkable track record having been tried and tested in the three countries with the largest number of banks: the USA, Germany, and China. Community banks are not just important for the economy but they are more accountable and more robust. During the 2008 financial crisis, not one community bank in Germany required a bailout from the taxpayers. Instead of maximizing fees, avoiding taxes, and trying hard to extract money from customers, community banks seek to lend ethically and work hand-in-hand with small businesses.

The result is greater business competitiveness and greater general prosperity for the community they serve.


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