Regional development of basic infrastructure activities, which operate as to public licenses*, is also much needed by SMEs.
*) The ownership of basic infrastructure should be in the hands of citizens / users / participants. However, basic infrastructure is often corporate, i.e. controlled by somebody with a power of office. Remedies are empowerment, accountability, shared interests and value proposition...
Let us apply a common term for a supplementing alternative to “Banking Monsters” (read: Financial Groups with several roles “under the same hat”); namely “Community Banking”. Massive stimulus directed to the large banks (“too big to fail”) do not seem to have been as productive as the “stealth”, continuous efforts for a. o. job creation of "Community Banking" – without any State support and stimulus.
According to FT.com - US “Community Banking” with less than 1 billion USD in Assets account for > 10% of the financial industry’s total assets, but provides 40% of the financial industry’s capital to small businesses.
US Federal Deposit Insurance Corporation has announced a new Initiative to support America's “Community Banking", including a project to gather more knowledge about this understudied sector. FDIC has observed that "Community Banks" are central to USA's job creation.
Therefore FT.com asserts: "The idea of being Small / Local / Specialist / Boutique is no longer taboo. Community Banks fit the times. They are the banks that politicians can be seen to embrace".
In South America, Europe, the Mid-East, Africa and in Asia the financial structures have different standards, reach and qualities – reflecting their nations’ diversity of industries and cultures – as well as their different exposure to Influences from other parts of the World.
According to FT.com - representatives of US Authorities do acknowledge lack of information about today’s "Community Banking", which contribute more than others to the real economy. This is also true in other Parts of the World.
A sub group of “Community Banking” are “Utility Banks”, like mutual saving & loans, credit unions and building societies are based respectively on deposits and bond issues – to lend against collateral. Needless to say - they deal primarily with CREDIT-/ DEBT INSTRUMENTS.
Another sub group are Single-Role Investment-/Merchant Services and Social Enterprise for Impact Investing - configured as Collaborative Value Networks (CVNs) - represent another sub group, which can deal with micro financing of enterprise and viable innovation in Small and Mid-sized Enterprises (SMEs) based on competencies in the fields of equity-capital finance, ownership and owner-governance.
The CVN-approach can reach into the real economies of regions by means of Regional Network Partners (RNPs) exercising the role of trustee/fiduciaries in peer-to-peer relations with owners/enterprisers and investors of Small and Mid-sized Enterprises (SMEs), hereunder family-owned firms, as well as directors of regional basic infrastructure activities. Most SMEs and regional basic infrastructure are not "Names" in media and financial markets. Therefore they may be underserved by transaction-fee driven, central financial players.
SMEs stand for more than 80% of BNP in developed nations and an even larger share of Job creation. Such initiatives can reposition Investment-/Merchant Services and assemble liable capital from many. Thereby capacities can be built by spreading risk – to facilitate access to needed intermediate financing - and get in place needed EQUITY CAPITAL.
As already mentioned above - there is also a need of affordable access to confidants and trustees / fiduciaries, like those of Bankier.co, who act as a "Wedge" - always at arm's length to insurers, brokers, banks and fund managers. Thereby Bankier.co can contribute to financial reform; namely:
1. A financial structure for the real economy, including SMEs, hereunder family-owned firms;
2. Separation of the roles and impartiality;
3. Financial innovation; i. e. with social impact.
Please also look to the last page of this website. It refers to an article in the Economist on October 22nd 2016, which sheds light on the stealth growth of Private Equity Funds (P-E funds) and the growing riches of their managers. The vitality of the Private Equity has seen it replace investment banking as the most sought after job in finance, according to the Economist.
The page asks the reader to take a stance on the P-E funds - and to evaluate the Creditas-Initiative as an alternative. It is a collaborative value network operated by self-directed capital partners. They have a right but not an obligation to become Members of a Protection Club. Each member has an individual master account. Members can assemble, spread risk and build capacities to facilitate effectively a. o. pro-active restructuring - and they avoid exhorbitant management fees.