Again, I said that sounds like it could be a reasonable trade-off. You have to balance...

1. the good of the theoretical possibility of getting a pittance more in interest from an international bank with

2. the social costs of not having a well-regulated local bank that will make loans in the community.

If you totally ignore #2, you're going to make a bad policy decision. I think that's approximately what you're doing.

My position is if the good from #2 is greater than the good from #1, discouraging community members from depositing their money in a distant bank over a local one is good policy.