At the beginning of EC661, add:
"The world money supply has increased over the medium to long term.
Almost all is created by commercial lending institutions. The resultant debts are an important promoter of economic growth and consumption, as well as instability."
Part 2: Insert new EC 662 and renumber:
"EC662 Greed-driven lending and financial engineering lead to the accumulation of debts, derivatives and other securities based on debt, and so to financial crises. In particular we aim to avoid:
1 Excessive economic dependence on private debt;
2 The reliance of banks on inter-bank lending rather than customer deposits; Excessive lending on mortgages and for consumption;
4 Complex and opaque financial instruments, which managers of financial institutions and regulators themselves do not understand;
5 Lack of transparency on financial markets, and lax and inadequate official regulation."
Part 3: Insert at the start of old EC663:
"In the longer term" so that it reads "In the longer term the banking."
Part 4: Replace old EC 662 (renumbered EC663 per part 2 above) with:
"EC663 The current economic system enables commercial banks and other financial institutions to exert an unacceptably large influence on the economy. Their lending power should be reined in, enabling the emphasis of lending to be transferred to sustainable production."
Part 5: Insert new EC 664 and renumber (insert after part 4 clause) with:
"EC664 We will introduce strict controls on the financial sector to ensure that it serves the purposes of a sustainable economy. To ensure stability, we will regulate all financial instruments firmly and permit only those that are transparent, that offer limited risk of financial destabilisation and are clearly beneficial. We will ensure there is stricter regulation of the banks, limiting them principally to the on-lending of customer deposits and enforcing fractional reserve ratios. We will require transparency in all financial trading, including that undertaken by private investment funds."
Add new EC665 and renumber:
EC665 Since these restrictions on bank-lending will severely restrict the money supply, the Monetary Policy Committee of the Bank of England will be instructed to monitor the need for increase (or decrease) in the money supply, based initially on maintaining the amount of money existing at the time of implementation of these measures. Criteria will be developed in the light of experience, aiming to avoid both inflation and deflation. It will accordingly instruct the Bank of England to create any supplement needed, on a monthly basis, and credit it to the Treasury to be spent by the government on projects that help society and environment. If the occasion arises that a surplus is threatening to cause inflation, the Bank of England will receive back and cancel an appropriate amount of money."
— The amendment was the addition of EC665, on the grounds that the original motion would have severely restricted the money supply.
This amounts to a ‘foot in the door’ for full monetary reform, as advocated for example by James Robertson, among many others!