Can Public Banking save the world?

Public Bank for public good

Photo courtesy Nonprofit Quarterly

 

In another article in the growing press coverage of the movement, Nonprofit Quarterly tracks the growing momentum for Public Banks on both coasts. This publication reaches many large organizations who are also working for public good. This coverage demonstrates that the Public Bank solution could have broad appeal to many groups that can become partners in a large coalition actively pushing for Public Banks.

“In New York City, there is a push for a community [municipal] bank to manage the city’s funds and distribute them across projects and community-based organizations. Advocates argue that putting the city’s funds in the hands of a transparent, government-run organization that is accountable to the taxpayer will lead to better outcomes for disadvantaged groups and will be more socially oriented. The ideal public bank gets more ambitious. …

“A public bank can, however, mitigate [lending] challenges by acting, as in North Dakota, as a backstop and providing capital for community investment rather than lending directly. In Los Angeles, public bank supporters are clear this is what they advocate. ‘The city-owned Bank of Los Angeles,’ they write, ‘would be a banker’s bank, partnering with local credit unions and community banks, guaranteeing their loans for locally directed economic development, public works financing, and jobs creation.’”

[Read the full article]

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