KEN Gow made an interesting point in The National about a Scottish National Savings bank (Letters, February 9).

Unfortunately there is a problem with this very sensible idea. The current fractional-reserve banking system, and the neo-liberal banking control system operated under the Bank of England in London, would prevent such a genuine bank from being able to operate in Scotland.

Indeed the excellent Airdrie Savings Bank, established in 1835, which came through the banking crises in 2007/8 without difficulty and which did not require a penny of public subsidy, was forced to close in April just last year because of the pressure on this “real” bank caused by the heavily taxpayer-subsidised “zombie” banks in the UK.

Real banks, such as the Airdrie Savings bank was, can’t operate where interest rates are held artificially low because the big banks can create their own “phony” money from thin air and do not require depositors.

A real bank in community ownership would be a great asset to Scotland; but in order to establish this we need banking reform. I will be coming to Greenock on February 20 and Banchory on February 25 to speak on this very subject (see The National Calendar).

Andy Anderson