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.