My idea would be for the treasury/taxpayer to keep control of those banks where taxpayers have injected  funds into them. RBS, Lloyds TSB and HBOS.  The taxpayer would want to see a return on their investment!

Encourage new customers from the Business sector or the General Public  to take up new accounts or transfer their business from other less 'lending' friendly Public or Business banks.

Run them as a type of credit union, where Businesses/Public invest to gain credit!

I would keep the majority of banks in the private sector, whilst using the competition from some 'state' owned banks to keep competition healthy, by loaning at reasonable rates.

Why is this idea important?

Because publicly financed banks have a strong footing through continued taxpayers investment, they will become stronger as the markets pick up,. It would allieviate the problem of businesses being unable to obtain credit at reasonable rates. With the general public being encouraged to use them also they would have a vested financial interest as they are basically shareholders as taxpayers anyway!

The treasury could 'claw back' the existing taxpayers investment over a period of years, whilst encouraging involvement from small business groups and the public/cutomers alike.

It benefits the public two-fold on recovering taxpayers investment whilst offering discounted deals on current accounts and mortgages.

It benefits small businesses by enabling them to lend money at reasonable rates.

It benefits the UK economy as it would promote new investment in small businesses.

The treasury could impose a 'levy' when the banks return to profit that could begin to pay off the UK deficit.

It would be favourable in the 'eyes of the public' as part of the deficit reduction plan.

It would be a win situation for the taxpayer and the treasury!

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