Banking is probably the oldest industries in the world, tracing its roots to the past where lenders, representing temples of worship or ancient rulers, provided loans to farmers to improve crops or traders to finance purchases in the distant region. As government-issued currencies became more acceptable and common, commerce expanded across continents and oceans, as well as a greater proportion in the population began to go above subsistence, the beginning of our modern banking system appeared.
Simply stated, la banque postale may be the utilization of locally based and supported finance institutions and organizations to fund local businesses and people inside the same community or geographic area. The concept implies a continuous cycle where residents of your community, utilized by and trading with local businesses, deposit their savings in locally owned institutions, which subsequently (and repeatedly) lend to or put money into local businesses and individuals.
Many community financing organizations aggressively seek deposits if you are paying higher interest levels to savers as opposed to those paid by national firms with access to capital over the country and the world. Whilst the devipky83 for local deposits can be finite, the accompanying administrative and marketing costs required to exploit a neighborhood marketplace is considerably less in comparison to the expense needed to support a national financial behemoth in multiple markets.
Providing a better Sensation of Security. Because the last financial disaster proved, local financial companies are unlikely to participate in in high-risk transactions including derivatives and other exotic investments. Furthermore, the opportunity to “reach out and touch one’s assets” – actually knowing the identity of borrowers or seeing tangible evidence of where the funds are utilized and the consequence of their usage – is less stressful psychologically than having a intangible asset whose short-term value is covered with rumor and speculation.
A community using a diverse group of vibrant local companies is much more stable, financially robust, and less prone to economic turmoil than the usual community served by a single employer or banque operations. When investors keep their funds in local finance institutions that purchase local businesses and people, they may be insulated to some extent from events away from community.