Chapter 17
The Financing System

In any vaguely reasonable system, banks must be exclusively nationalized, because the concept of private banks is a heresy. Indeed, at the level of individual deposits, guarantee is a social necessity, so the failure of a bank is no longer socially acceptable. Furthermore, at the level of financing activities and households, defining to whom to grant credit and to what extent is a fundamental element of economic and social policy, hence a sovereign function. When the State gives up this function, it is forced to implement a complicated system of subsidies and rescues of struggling enterprises, which in the end is much more costly and less effective. On this point, it seems that rulers have ceded common sense to liberal ideology and to the pressure of lobbies for the past few decades.

In the system we propose, the bank provides four basic services for individuals and organizations, namely reliable accounting of each account's balance, and the availability of three forms of payment:
Direct payment via a card that acts as a wallet.
Online transfers.
Validation of received payment requests, also via the Internet, in place of the current automatic deduction system.

Then, the bank provides a noble service: financing for organizations and credit for individuals and organizations. The role of the bank is to allocate funds in order to best respond to a charter that is currently defined by political actors, but in our system, it will progressively be transferred to organizations in the same way as production. In other words, the noble role of the bank is to apply a strategy aimed at optimizing the ratio of social benefit to risk.

This financing system ensures the unification of what we call today commercial companies, administrations, and social economy enterprises. Indeed, an organization as defined in Chapter 8 can fulfill the economic and social roles of all the entities we have just mentioned. This is made possible by the fact that it is not required to achieve a positive financial result over time and does not need capital since the bank can choose to lend it or subsidize it.
The universality of organizations in terms of economic and social matters lies in their ability to reconcile two characteristics. On the one hand, their ability to maintain good operational efficiency over time, mainly due to their resilience against Parkinson's Law (1). On the other hand, their ability to remain at the service of the public interest, due to their independence from private capital, and therefore from private interests.

This banking service is provided by organizations of approximately one hundred people, as described in Chapter 8. Every individual or legal person chooses their advisor from one of the banking organizations and can change at will, but only has one at a given time. Non-banking organizations and other potential private companies are not authorized to offer credit or sell insurance, either to individuals or to other organizations or companies.
Symmetrically, individuals and legal persons are no longer authorized to carry out financial investments. The reason is explained in Chapter 4: an investment is a political act, because the total of investments has a major structuring effect on economic activity. Therefore, to ensure respect for the common interest, investments should be the result of thorough reflection, which citizens largely do not provide when placing their savings. Our intention is not to limit individual freedoms, but simply to bring money back to its primary function as a means of exchange, rather than as an object of accumulation and power, as in the 'I lend you my money on condition that you...' kind of dynamics, a fetishism that Marx referred to.

The creation of organizations occurs through a dual spontaneous and directed mechanism.
An individual can submit a project to a bank in order to obtain financing that allows the organization to start up. This is the spontaneous aspect.
Existing organizations can launch calls for projects, which are collected, classified, and disseminated to the public and banks by specialized organizations. An individual can thus strengthen or build their file by responding to one or more of these calls for projects. This is the directed aspect.

(1)
Effective modernization of public services is absolutely not about applying so-called more efficient 'management' methods from the private sector, which we have seen in the article by Meyer and Rowan are nothing more than myths. Effective modernization of public services is about setting up an efficient system to counter Parkinson's Law. This implies that, in the absence of an alternative proposal, effective modernization of public services is their transformation into organizations as described in this book.