Abstract
The basic idea of postal banking is to have a public bank that would offer a wide range of transaction services, including deposit-taking and small lending. Post offices could offer these services at a much lower cost than banks and the fringe banking industry because (1) they can use natural economies of scale and scope to lower the costs of the products; (2) their existing infrastructure significantly reduces overhead costs, and (3) they do not have profit-demanding shareholders and would be able to offer products at cost.
Repository Citation
Mehrsa Baradaran,
Postal Banking's Public Benefits
, 3 Am. Affairs 18
(2018),
Available at: https://digitalcommons.law.uga.edu/fac_artchop/1198