People-Owned Government Bank (POGB)

1. Structure, Ownership & Governance

• Publicly Owned, Independently Operated
  • The government establishes the bank and guarantees deposits but does not interfere in daily operations.
  • Governed by a charter preventing privatisation to ensure long-term public benefit.
• Depositor-Shareholder Model
  • Every depositor is a shareholder, with voting rights linked to account tenure and average balance (ensuring fairness).
• Board Composition & Oversight
  • 30% Government-Appointed Financial Experts (for regulatory oversight).
  • 40% Elected Depositor Representatives (ensuring customer-first policies).
  • 30% Independent Financial & Community Experts (for accountability and ethical banking).

Protections Against Mismanagement & Privatisation

• Strict Legislation preventing any future government from selling or privatising the bank.
• Mandated Annual Public Reporting & Auditing to ensure transparency and prevent corruption.
• Independent Ethics Committee to review and approve major investments, ensuring funds are used in the public interest.

2. Dividend & Profit Distribution Model

• Annual Dividend Based on Average Account Balance
  • Calculated using a progressive model (ensuring all depositors benefit, not just the wealthy).
• Profit Allocation for Long-Term Stability
  • 50% → Paid as dividends to depositors.
  • 30% → Retained for capital growth, financial stability & reinvestment.
  • 10% → Invested in community infrastructure (affordable housing, renewable energy, public projects).
  • 10% → Operational costs & banking innovation.

3. Banking & Financial Services

• Retail Banking (For Everyday Australians)
  No monthly account fees on standard accounts.
  Home loans prioritising owner-occupiers & first-home buyers.
  Business loans focused on small & medium enterprises (SMEs) instead of large corporations.
  Lower transaction fees than private banks.

• Investment & Savings Options
  Term deposits with guaranteed returns.
  Superannuation-compatible savings accounts.
  Ethical managed investment funds (green energy, local infrastructure).

• Social & Ethical Banking Mandate
  No investments in fossil fuels, weapons, or predatory lending.
  Priority funding for public housing, public transport, and small business growth.
  Low-interest emergency loans for people in financial hardship.

4. Capital & Solvency Management

• Financial Stability Measures

  • Higher capital reserves than private banks.
  • Mandatory annual stress testing to ensure resilience.
  • Profits reinvested into the bank before external expansion.

• Government-Backed Deposit Guarantee

  • Up to $500,000 per depositor is protected, ensuring confidence in the system.
  • The bank remains self-funded after initial establishment, preventing reliance on taxpayer bailouts.

• Risk-Managed Lending & Mortgage Model

  • No speculative property loans (reducing real estate inflation).
  • Caps on investor mortgages to prioritise affordable housing & first-home buyers.

5. Public Accountability & Transparency

• Real-Time Financial Dashboard

  • Depositors can see where their money is invested in a transparent online portal.

• Annual Member Meetings & Policy Voting

  • All depositors can vote on:
    Investment priorities.
    Board members.
    Dividend distribution models.

• Community Reinvestment Program

  • A portion of profits funds projects voted on by depositors (e.g., new schools, hospitals, clean energy initiatives).

Economic & Social Benefits of POGB

Australians Reap the Benefits – Instead of private shareholders profiting, dividends go back to everyday depositors.
More Affordable Home Loans – Focuses on housing for Australians, not speculative investors.
Stronger Local Economies – Small businesses get priority funding instead of large corporations.
Transparent & Ethical Banking – Depositors know exactly how their money is used.
Long-Term Stability – Profits are reinvested into the bank, ensuring solvency and growth.