Singing Pig

This is a really off the wall question based on a "water cooler" office discussion we are having but how would you go about starting a bank?

all regulation aside would you need a huge pile of your own cash?

Not sure Leighton, but I do know they don't use their own cash!!

Craig:

Not sure Leighton, but I do know they don't use their own cash!!

Thats the best part !

An interesting subject if we can pull up some information...

You need millions of mugs to lend you the money at 0.1%p.a, then you lend it out at 5-7%p.a. (the Natwest model).

Strangely i was wondering the same thing the other day.  Proves warped minds think alike, methinks.

Establishing customer confidence is the tricky part, as always.  Also, how do you then go about issuing debit cards etc, what are the rules?  And who makes them?

Have a chat with Paul Leavers, he and I discussed this a few months ago (in the context of mortgage lending) when The Credit Crunch hit home.

I know Paul met up with some senior London financiers to research it further, but not sure what's happening now (if anything).

I'm also researching it myself.  I've discovered that it is possible to create your own mortgage lending for already-owned properties - but I can't find a quick'n'easy way to provide an "open" facility for ongoing purchases.

Keep debating... there must be a way!

Cheers,
Alan

Not sure how valid this is, but interesting nonetheless.  http://www.youtube.com/watch?v=cy-fD78zyvI

Bank of Wales was started by Julian Hodge of Cardif who was an accountant, he also started the Julian Hodge bank which is still very active in the commercial property sector in Cardiff, however he sold bank of Wales believe it or not to the bank of scotland who ditched the name bank of wales.

heres another useless fact - Julian Hodge served time for fraud, i believe before he opened his banks....he then retired to jersey as a tax exile and died only a couple of years ago.

so it is possible.