The Idler

Boycott the Banks

26 November 2009

Rather than whingeing about the banks, and vainly hoping that these conscience-free leopards will change their spots, or that one day some magical change of policy will alter a deeply ingrained culture, it makes more practical sense simply to withdraw all your money from them and find alternative money stores or banking systems. Or move your overdraft! We moan that the government bails out failing banks, but then we continue to bail them out by continuing to use their services. We need instead to cast them out into the wilderness by having nothing to do with them.

In my own case, three years ago I quit First Direct and joined the Cooperative Bank, which operates on completely different principles to the big five, and is, by the way, extremely efficient. It also has an ethical policy. I am now going to move the Idler’s bank account from Lloyds to the Cooperative.

At the same time, if you do have any extra money, then it makes sense to withdraw it immediately from any sort of capitalist institution (ie bank, pension fund, ISA etc etc) and instead buy silver and gold, or old books, or anything beautiful, with it. In other words, find something that will keep its value, rather than be subject to the chaos of the free market.

Other alternatives are credit unions, which offer their members savings and loans. The Credit Unions also, for example, offer Child Trust Funds that do not invest in shares. Then there is the People’s Internet bank Zopa, which brings together individuals who will lend to each other.

It may also be worth looking at the Islamic banking sector, since that is less volatile and prey to top people’s greed than the UK systems. Islamic banks have been particularly successful in Malaysia, as they have far more restrictions on the types of investment they carry out, and have developed systems of banking which do not involve, for example, usury. I don’t have any personal experience of Islamic banks, but here is the website for the Islamic Bank of Britain, which may make interesting reading.

We simply need to withdraw our support for the old banks, those diseased institutions, and go elsewhere. TH