The Banking System Of Banks

2011 Words9 Pages
This essay will evaluate the reforms to the banking system of ability of banks to create money in the form of bank deposits when they make loans and the problems caused by the way in which money is created by banks and the effect on debt, house prices, inequality, the environment, the level of democracy, recessions & crises, jobs & businesses and taxes & public spending.
The advantages and disadvantages of the positive money proposal include the following;

The bank would provide the payment systems such as cheque books, debit cards, internet banking, and ATMs that allow the customer to use their sovereign money to make payments.
The account holder can easily access their money through ATMs, transfer and check their account online. Although, banks put limits on the number of transactions and transfers per month.
Banks require account holders maintain a minimum balance in their account and if they do not maintain the account, they will be fined. However, the banks give a limit of transfer and withdrawal per month and this poses an inconvenience to the customer who needs to make an emergency withdrawal that will exceed the number of withdrawals permitted.
The accounts would be interest free, and banks would be able to charge account fees for providing these services.
Banks offer zero percent period to the account holder this means that they can effectively benefit from an interest-free loan. The account has to be clear before the zero percent offer ends
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