It's not a bad idea in some cases: For example in Chile checking accounts were quite difficult to get for the poor until the state's bank [1] started issuing a

It's not a bad idea in some cases: For example in Chile checking accounts were quite difficult to get for the poor until the state's bank [1] started issuing a bank account to anyone who requested it at $0 fixed cost, at a loss. This bank also: - Gives mortgages to sectors of the population in which banks are not interested. - Partners with small shops to offer financial transactions in low-income or very remote areas [2] or where opening a branch does not make economic sense. The social benefits are big and out-weight the costs/risks that would not have been taken by a private party. The bank even has healthy profits of around 350 MUSD per year that go back to the chilean state. Considering that access to financial services is fundamental to participate in the economy, I find it to be an excellent government goal. In this case it looks more to me a bit similar to the Deutsche Post's Postbank in Germany, that leverages their Post offices to offer financial services. [1] https://www.bancoestado.cl/ https://www.bancoestado.cl/ [2] https://goo.gl/maps/R22eAJd8B3LKnz8s7 https://goo.gl/maps/R22eAJd8B3LKnz8s7