Banking: From Global to Local
Wednesday, 6 March 2013
The European Conference on Banking and the Economy (ECOBATE 2013) at Winchester Guildhall
organised by the
Centre for Banking, Finance and Sustainable Development (CBFSD), University of Southampton
For the full conference programme (PDF) please see at the very bottom of this page.
Reviving local banking in the UK: How local banks can help deliver sustainable economic growth
King Alfred Conference Chamber, 1.30-3.30pm
Why Local Banking?
Locally headquartered banks have the same interests as the local business community. Without local growth and investment, they cannot grow. Since local banks are small, they are not primarily interested in lending to large-scale financial speculators, which generates asset bubbles and banking crises. Instead, their lending tends to be aimed at local households and local firms that engage in productive activities.
Large banks are hardly interested in making small loans and have outsourced the credit analysis from the relationship with a local bank manager who knows their customers to an automated credit scoring model that makes remote decision - and often the wrong ones. When funding cannot be obtained, businesses fail or never start, and projects are put on hold. This also sets back efforts to decarbonise the economy.
In other countries, such as in Germany, the majority of banking relationships are still locally based. This is a key cause of the strength of the German SME sector. This public session will explore the case for reviving local banking in the UK and the benefits of localising money flows. It will explore the risks and benefits to local government of supporting local banks and the audience will hear of plans for a community bank in Hampshire.
Public Plenary: Do We Need More Radical Reform of the Monetary and Banking System?
Bapsy Hall, 3.40pm - 5.45pm
Alternative Approaches to Money and Banking
Full reserve money as attractive alternative to our monetary system, Michael Kumhof, Deputy-Director, Modelling Division, International Monetary Fund
How local banks contribute to local communities in Germany, Dr. Thomas Keidel, German Savings Banks Association
Sustainable Banking - is this possible?, James Vaccaro, Triodos Bank NV
Local banking solutions - it can be done, Liz Wilkinson, Executive Director, Finance, Bournemouth Bourough Council
Evening Public Plenary: Does the UK Need to Re-Introduce Local Banks?
Bapsy Hall, 5.55pm - 7.30pm
The Roadmap for the UK Banking Industry - Back to Local Banks?, The Rt. Hon. Dr. Vince Cable, MP, Secretary of State for Business, Innovation and Skills
The Benefits of German Local Banking and its Future, Dr. Karl-Peter Schackmann-Fallis, Executive Board Member, German Savings Banks Association
Local Banking and the Money Supply - Some Important But Neglected Facts, Prof. Richard Werner, Director, CBFSD, University of Southampton
Free Wi-Fi available for rooms inside Guildhall
(Password available at reception)