Government mulls 'People's Bank'

The government has confirmed that it is hoping to extend banking services at the Post Office, creating a so-called 'People's Bank'.

The Department for Business Enterprise and Regulatory Reform (BERR), headed by Lord Mandelson, wants to broaden services at the 12,000 UK post offices.Some observers believes the move may help to stimulate lending.But there is no indication yet that the government will provide financial guarantees to any 'People's Bank'."Royal Mail has been very clear that we want to expand the range of banking services we provide through the Post Office network and there are a number of things in the pipeline," said Royal Mail boss Adam Crozier.According to the BBC's business correspondent Joe Lynam, BERR has asked the Commons Business & Enterprise Select Committee to look at ways in which this can happen. (...)

Read more at BBC News - Business


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