New Bank Rule Changes Will Push Barter’s Use

It will be years before some of the new proposed bank rules become effective, but when they do the use of organized barter could be enhanced. As we have pointed out in BarterNews over the years, barter is an effective and versatile business tool on virtually every level of business, from the small entrepreneurially-driven business on up to international multi-national organizations.

And, to various degrees, all business sectors rely on outside capital. Theses new banking rules on the horizon will alter the banking business, not only by limiting risk-taking and the cost of loans, but by providing a shot-in-the-arm to the commercial barter industry. This is already underway, as regulators from 27 countries have just concluded a far-reaching meeting this past weekend in Basel, Switzerland.

Details will be forthcoming over the coming months as the plan crystallizes, but essentially major global banks will be required to retain much greater levels of capital as a percentage of their assets to protect against potential losses. the purpose of this plan is to avoid a repeat of the financial crisis of 2008. It will not only transform banking and potentially drive up rates on deposits, but also will raise the cost of loans and crimp their availability.

As indicated these new rules will take years to implement, but the business community would be wise to realize what’s coming and begin immediately to embrace barter — using their products and services — as another financial alternative.