Canadian banks made over $30 billion in profits last year, yet banking fees continue to rise. Predatory payday lenders routinely charge as much as 600% interest on small loans -- sometimes more -- hitting poor, marginalized, rural and Indigenous communities the hardest.
But there is an alternative right under our noses: postal banking.
Justin Trudeau’s government has started to re-imagine the future of Canada Post, including restoring some door-to-door delivery. But for some reason, postal banking has been left off the table.
We can do better. Tell Justin Trudeau and Judy Foote to strike a blow against predatory banks and lenders and consider postal banking for Canada.
A public bank system governed by Canada Post is a “win-win.” It would provide financial services to Canadians who normally have to rely on predatory lenders while earning significant revenue for a Crown corporation without charging prohibitive fees.
We know Canadians want to restore and expand our profitable public postal service and reverse Harper’s cuts. That was the overwhelming message sent to the Trudeau government last fall during their comprehensive review of Canada Post. Unfortunately, a recent parliamentary committee’s report does not include proposals for postal banking. Why not? Have Canada’s big banks teamed up to kill postal banking?
Over 1,700 bank branches have closed in recent years. We’re being gouged from every angle so that banks and lenders can maximize their profits. As banks increasingly cater to the world’s super-rich, many Canadians have to rely on payday lenders, which charge crippling interest rates so unfair even the United States has started to clamp down.
Tell Justin Trudeau’s government you want it to put postal banking back on the table.
This isn’t magical thinking. Canada had a postal bank as recently as 1968 — and evidence from around the world shows postal banking is a proven moneymaker. Not only would postal banking be accessible anywhere there’s a post office and offer a public alternative to payday loans, it would also make the banking sector more competitive. The Canadian banking sector is one of the most concentrated in the world, with just three corporations controlling over 60% of all banking assets.
It would also make banking more accessible. Over 1,200 rural communities do not have financial services but do have a public post office. What’s more, Canada Post already has the infrastructure to make a rapid transition to include postal banking.
Let’s make a public banking system that works for all Canadians.