On Monday, we reported on Bank Transfer Day, a campaign to chip away at the power of big banks.
But wait!! Instead of hurting big banks by pulling accounts toward local credit unions and community banks—could it actually have helped big banks? There’s a lot of anecdotal evidence that Bank Transfer Day was successful in spurring people to move their accounts, but a comprehensive accounting is yet to be done. We really don’t know for sure.
Meanwhile, some commentators say that Bank Transfer Day could have been a blessing to the big banks. The Motley Fool, for example, says that banks might relish getting rid of thousands of small checking accounts. Big banks have lots of deposits but less demand for loans—and a narrower margin on which to charge interest and make money. And, it costs banks to hold deposits. Others, of course, would say that the bank could lend the money but are so risk averse that they won’t. Banks often don’t make money on checking accounts, so good riddance.
Care to read more?
See the Motley Fool stories shown at right?
Here’s a link to the November 3 Motley Fool story on Bank Transfer Day. Then, here’s the November 7 update story on the Fool. (Note: If it’s your first visit to the Fool, you may have to enter your email address for free access to the stories.)
In the end, this could be a win-win situation, the Fool says. “Everyone might end up better off. Consumers might switch to credit unions where they get better service and lower fees, and for-profit banks might stem some of the rampant deposit growth and unprofitable customers that have been crimping profits. If only more protests could work this well.”
Do you agree with the Fool?
Do you want to see the big banks hurt?
Or, would a win-win situation be OK?
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Originally published at www.OurValues.org, an online experiment in civil dialogue on American values.