In Canada's concentrated banking industry, what we need is a public bank

By Linda McQuaig

As they've turned their attention to catering to the wealthy, Canada's six big banks have shut down more than 1,700 branches across the country in recent years. In many rural communities today, you're no more likely to see a bank than a buffalo.

This has left hundreds of thousands of Canadians without bank accounts, including many low-income city dwellers -- notably young people with poor credit ratings and lack of identification -- who now rely on pay-day loan companies charging annualized interest rates well above 300 per cent.

All this suggests there's a compelling case for Canada Post to offer banking services to the public -- as it did for decades until 1968. The possibility of reviving "postal banking" will be considered as part of a sweeping review of Canada Post, announced by the federal government last week.

SNIP

A postal banking system could even inject some competition into Canada's highly concentrated banking sector, one of the least competitive in the world. According to a 2014 IMF report, Canada is among a handful of countries where the three largest banks control as much as 60 per cent of banking assets.

http://rabble.ca/columnists/2016/05/canadas-concentrated-banking-industry-what-we-need-public-bank