Towards a 21st Century Banking and Monetary System

Submission to the Independent Commission on Banking (39 Pages)

nef and Positive Money show why systematic reform of the banking and monetary system is urgently needed.

In collaboration with:
Centre for Banking, Finance and Sustainable Development
University of Southampton, School of Management
(Professor Richard A. Werner)

Short insight:

This submission outlines a proposal for full-reserve banking, where the transactional function of banking (the payments system) is separated from the lending function. This system would be stable than under the current business model, which is often labeled ‘fractional reserve banking’

HIGHLIGHT - Positive Money

Demanding a banking system that works for society and not against it!

This year the government will decide what to do to fix the banks. We have to make sure they make the right choice.

The Solution (30 second overview):

High-street banks have been creating up to £200bn of new money every year, causing massive inflation (especially in housing) and saddling the public with debt. We can't trust profit-seeking bankers or vote-seeking politicians to create money, as the temptation will always be for them to create too much. So instead we need an independent, transparent and accountable body that is responsible for creating money and keeping inflation low. We suggest that the Monetary Policy Committee should have this task.

Have a look at the very well developed website, loaded with tons of information including a complete proposal for a new national wide currency system. LINK