Create a public post office bank!
To address the growing uncertainty over the financial system, in the face of rising inflation and interest rates, the increased risk of a domestic banking crisis because of our banks exposure to the property bubble, the increasing rate of bank branch closures and threat to viability of our postal service, the Citizens Party is spearheading a campaign to establish a public post office bank.
- Why we need a public post office bank
- Seven benefits of a public post office bank
- Commonwealth Postal Savings Bank Bill
- How a public postal bank would work in Australia
- State of Banking in Australia - The national picture
- International examples of post office banking
- Recruit your community—Local Government Resolutions
- Solve financing needs of local government
- Prominent calls for, and to investigate a public bank option
- Christine Holgate and The Australia Post Senate Inquiry
Skip to What you can do
As part of that effort, the Citizens Party has drafted the Commonwealth Postal Savings Bank Bill, in coordination with Bob Katter MP, to establish a public post office “people's bank” similar to the way the original Commonwealth Bank started in post offices in 1912.
Importantly, the original Commonwealth Bank first proved its value as a public bank in the global financial panic of 1914, when it averted a “run” on all Australian banks by the actions of its Governor, Sir Denison Miller, who announced publicly that the Commonwealth Bank stood behind the deposits in all of the banks; consequently, the feared bank panic didn’t eventuate. (In London, which was the epicentre of the 1914 panic, the Commonwealth Bank’s London office was the only bank to remain open during the emergency.)
Like the Commonwealth Bank then, a new public post office bank will be able to guarantee deposits and provide financial services because it is owned by the government. Put simply, governments are far, far less likely to go bankrupt than private banking corporations are, so customers of public banks can have confidence that their deposits will always be honoured and they will have access to banking services.