Sunday, July 20, 2008
Community banks are essential
Light user fees will be paid direct to the community bank on a monthly schedule by end users. An established and trusted entity such as the community bank builds confidence on sides of the transaction that the payments are safe and properly accounted. Revenue in the projects community bank account not only supports enterprise growth, but also enables the bank to make loans to other community enterprises. Reserves enable community banks to grow capacity and provide additional financial instruments to community members. These could include credit, interest bearing savings accounts, collateral backed mortgages and business loans. Financial instruments improve availability of capital to the community creating wealth-generating opportunities.
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