AMSTERDAM PROSTITUTES NEED HELP

The city of Amsterdam has a problem. Most banks refuse to give credit to prostitutes even though prostitution is legal. The prostitutes are an important part of Amsterdam’s economy and the prostitution segment of the economy is hurting due to its inability to get credit.

The city has rejected the idea of a “sex bank.” But it recognizes prostitution as a bona fide industry and the need of its proprietors to obtain reasonable credit.

May I suggest two examples for Amsterdam. San Francisco has developed a Bank on San Francisco. While the Bank on San Francisco does not provide loans it allows individuals who do not qualify for most banking accounts, including presumably prostitutes (although prostitution is illegal), to open accounts and use those accounts to cash checks and maintain savings accounts. The Bank on San Francisco, uses 170 branches of volunteering banks which agree to relax some of their rules, such as ID requirements, prior credit requirements, minimum account balances and some fees. As a result low income people can keep their money in a bank and not risk having to carry the money in their pockets. Also by cashing checks in the bank they do not have to go to high price check cashing firms.

A second model is micro-banks. Micro-banks, generally found in third world countries allow small entrepreneurs to borrow small amounts of money to open or expands small businesses. Amsterdam officials might like to know that the micro-banks have a repayment rate of over 95 percent.

By opening the bank up to all who are in need of banking sevices, such as the Bank on San Francisco and by using existing banks it won’t be a sex bank. By making loans like the micro-banks it will serve the needs of the sex workers. Of course, while it need not make million dollar loans,the cost of services in Amsterdam is a lot greater than in the Third World, where many of the loans are for as little as $125.