community banking network ) with the greater part of profits going to the community banking sector .
As part of a strategic banking strategy , the National State Bank will spearhead investment in cooperatives and small / medium enterprises contracted by anchor institutions . In the case of an existing business being sold or going into liquidation , the employees themselves will be given the first opportunity of buying the business with funding provided by the NSB .
The NSB , in conjunction with the central bank , will allow credit unions and post offices to enhance their services and lending capabilities . This would facilitate full banking capabilities more quickly and easily for smaller financial institutions and increase competitive capacity in the financial sector . The NSB will work with the Central Bank and regulators to ensure a robust financial system , while NSB outlets / branches would cooperate with or merge with independent credit unions .
Nationalising AIB or Permanent TSB to create a state bank ( NSB ) will create a community banking network by incorporating Credit Unions ( on a voluntary basis ), post offices , and local authorities . Credit Unions will have the option of becoming NSB outlets or remaining independent . The community banking sector ( Credit Unions , post offices , and local authorities ) will have its services enhanced in line with other banking institutions , allowing for the issuing of debit cards , providing ATM services , and so on .
While former AIB / NTSB branches will be independent banking organisations within the NSB , they will administer loans to SMEs and have a special representative of the Strategic Banking Corporation to work with local entrepreneurs and cooperatives . Credit unions , post offices , and local authorities would administer the loans and take responsibility for 10 % of the loan rendered . Customers who currently have mortgages with AIB / PTSB can switch their mortgage to another bank or credit union or stay with the newly formed state bank . Funding for the State Bank would be taken from existing AIB or PTSB Banks as nationalisation takes place . Credit Unions and post offices would also be encouraged to pool their funding resources through a community banking network guaranteed by the NSB .