Historically, federal government involvement in credit areas has increased financing and lowered the expenses of credit. By insuring deposits, supplying liquidity through the main bank, producing additional areas enabled by GSEs, and creating a framework of federal federal government help, personal banking institutions have already been able to provide at unprecedented amounts. Postal banking institutions could connect with this existing apparatus and route credit right to borrowers without the need to move the funds through the banking system that is bloated.
Postal lending is going to be controversial, however it has got the potential to radically advance the everyday lives of this US public while balancing the skewed credit areas. Also little loans of lower than $500 at an acceptable rate of interest might help an important part of the American public withstand a credit crunch that is short-term. 7 similar to main bank liquidity for struggling banks that are large the postoffice would offer liquidity for struggling people. (more…)