Is this competition, or simply Orwellian dream becoming a reality?

One of Finland’s outstanding independent financial journalists, Joukko Mattila, has recently written (in his Finnish language Economic Blog,) that Pohjola Bank, the central kingpin of the cooperative banking movement, should prevented from entering the healthcare market, albeit, through its insurance company. He makes several points in this blog that:

  1. Banks are not allowed to enter other non-banking related markets, just as ordinary companies are restricted from entering the banking market unconditionally.
  2. Banks, and especially big banks, do not need to be exposed to more risks, that may endanger the financial markets.

… and concludes:Traditional banking is heading for a crisis of profitability, (in a) zero interest rate environment and with new financial Ubersbut do we want to put health care in the hands of the banks? An Orwellian dream is becoming a reality, but instead you will end up controlling the State Bank.”

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