In essence a Social Banking Foundation would be funded by an annual levy on all holders of banking licences (authorisations by the FSA) to compensate society for the economic privileges authorisation bestows.

The levy would be related not to profits but to the size of their consumer and small business deposit base. This would bring Internet, telephone and postal banks into the net thus achieving a level playing field rather than Government approaching only the traditional high street banks when a social banking initiative needs funding. The traditional banks are likely to welcome a much fairer distribution of the social responsibility burden and could receive partial relief from the levy to reflect their existing efforts.

A Social Banking Foundation would distribute its resources wisely across a range of social banking activities (but flexibly and in partnership with local resources where they exist) including the proposed community bank network, post office facilities, remote ATMs, credit union support, community finance and micro-credit initiatives; possibly even debt advice

The existence of a Social Banking Foundation would enable government to exercise a 'light touch' control over social banking provision, having ultimate responsibility for the scale of licence levy, whilst at the same time standing apart from day to day intervention. Similarly the banks, having paid the levy, should not be subject to a succession of funding demands.