I don't know what the financial status of the NFU Mutual is, but I understand that it must have enormous funds backing up the insurance business. Would it be feasible for it to set up its own bank, a fair bank that would not rip us off for its own ends, a bank for farmers, who would understand what farming is about.

 After all its insurance business has branched out into the non farming community and NFU has honoury non farming members these days,

What would you think of a pilot Mutual Bank being setting up in your area for farmers, with farmer directors as well. I am sure a good many customers would only too pleased to be shut of their high street bank.

Fretaw,

         The idea must be ripe for exploration at this time and I certainly feel that it could be a very positive step. My main concern would be "Can it remain Mutual?" as this would be an essential character for it to give farmers best advantage and to stop "external pollution" (for want of a better word). A good topic for debate at this time. 

AllyR:

My main concern would be "Can it remain Mutual?" 

The answer is Yes. So long as it does not lend more than it has on deposit. It also has to watch the cost of deposit, lending and its interest repayments and loan book management are sound.

A good idea Ally. It is time indigineous farmers, and other indigineous groups started 'trading in the community' so to speak. In so doing they would mirror only what Muslims and Jews already do to great effect. Your NFU bank would not be exclusive but would allow anyone to deposit but it would be managed on Mutual Lines.

Ally, I hope the powers that be take you up on this. The time is right to study the principles of thrift and prudence exercised by the Victorians.

 An interesting sugestion! My friend Roger Everdell, when he was County Chairman for Beds and Hunts worked his guts out to try and form an NFU Bank, but was opposed the NFU Council and the main banks. This was some 15 years ago.Probably like me, Roger was ahead of his time!!

Gordon Ascroft MBE

Peter Wells:

A good idea Ally. It is time indigineous farmers, and other indigineous groups started 'trading in the community' so to speak.

This all makes good sence

Quote From Wikipedia,

Mutual savings banks were designed to stimulate savings by individuals; the exclusive function of these banks is to protect deposits, make limited, secure investments, and provide depositors with interest. Unlike commercial banks, savings banks have no stockholders; the entirety of profits beyond the upkeep of the bank belongs to the depositors of the mutual savings bank. Mutual savings banks prioritize security, and as a result, have historically been characteristically conservative in their investments. This conservatism is what allowed mutual savings banks to remain stable throughout the turbulent period of the Great Depression, despite the failing of commercial banks and savings and loan associations.

Stabilaty sometimes more important in times of depression.

Peter Wells:

A good idea Ally

AllyR:

This is Fretaw's thread. It is Fretaw's idea.

Quite right. I apologise to Freetaw. It is a good idea and one the commercial banks would be likely to oppose. It will be interesting to see if the NFU pick up the idea. Maybe FW can try to take a sample of opinion?