The STATE BANK and the COMMERCIAL BANKS

Money has probably been invented 2600 years ago  to reward soldiers without promises … A piece in Gold or silver had (and still has) an universal value… 

So,  money must be a guaranteed medium of exchange !!!

A STATE BANK must manage the wealth of the Nation … What could us imagine its relations with the commercial banks in our system??? 

In the concept of “Outsourced Resources Banking”, a State Bank manages a limited money supply which own  a tangible  value.

In this case, it’s easy to imagine the State Bank make loans of real value  for the commercial banks, and advise them to create a convertible local currency to fill specific needs

IN THIS SCHEME : 

- The State Bank mints coins, manages the money supply and advises the commercial banks

- The chartered commercial banks are responsible of the economic activity at the local level , by creating a convertible local currency , based on their own savings. 

- The need of cash is filled on a “project based “ economy !!! because, for most of the people,  getting assets is more useful than have money.