Forum Post: Interest Free Bank
Posted 13 years ago on Oct. 28, 2011, 10:26 a.m. EST by matthewasobol
(0)
from Thousand Oaks, CA
This content is user submitted and not an official statement
There was an earlier post suggesting that we start a business with all the money that has been donated. http://occupywallst.org/forum/fight-fire-with-fire/ I think what should be done with the money is to start an interest free bank. A big reason why a lot of people are in debt is because they can barely make a dent in what they owe because they are just paying interest. Loaning people money interest free to pay off their current debts could help millions of people.
I agree we need interest-free banks or low-interest banks.
BTW: Islamic banking is interest-free for the most part. Of course, they have to charge interest to be profitable. Islamic banking is spreading quickly since it offers incentives to lenders. It's not perfect (paying "interest" is voluntary), but it shows a global change.
agreed. if they stop paying interest on deposits, then banks can become profitable once again
Say they do make a bank, they give money to those who need it, and how do they get the money back? Will the recipients pay the money back if there are no penalties. There will be a handful who will not pay it back and it will end up an account of zero dollars. Maybe there is a signed payment plan, they will pay without interest - but what if they were late how would the be penalized. Someone else might need the money more and the bank can not issue the money because of doubtful accounts. Where then will the people get money? Borrow from another bank who plays the interest game? The bank would not be profitable and would be as big as the money put into it. It would only help a few people and it rides on if those few can pay it back in time.
Interest rates are so low these days they practically are interest free already anyway.
You would need to charge fees to stay afloat.
Everyone would hate the fees.
Everyone would hate you.
You would be a bank.