kp, "Are there any independent government operated banks in the free world?"
None that I know of. Those that were government banks were financial drains of government balance sheets. Government banks couldn't compete with private banks as they were arms of government policy and subject to capital restrictions.
In short government banks were a flop.
Look at the CBA. Reserve Bank to Government to private bank and now with a MC larger than all EZ banks combined.
Government interference with micro and macro finance is restricted by market forces but bucking that idea is the Chinese banking system; an arm of government policy.
