NY State Senator James Sanders at Carnival, Rockaways

New York State Senator James Sanders Jr. (center, in all white) leading the 3rd Annual Carnival in the Rockaways. Photo by Oscar Perry Abello.

New York State’s public banking movement is preparing to pass its own version of California’s successful Public Banking Act, AB857. So writes Oscar Perry Abello in NextCity, who says the New York bill will make it easier for cities and counties in New York State to create their own public banks. Introduced by NY State Senator James Sanders Jr. last session, S5565 would create a uniform charter for municipal, county and city public banks that would hold municipal deposits and leverage those dollars to serve local communities. Sanders states:

“One of the reasons people are having trouble building businesses, especially for minorities, is that we don’t have the capital. We need ways of building our businesses. [Public banking] seems to be a way of financing them.”

Andy Morrison, campaign director at the New Economy Project, part of the Public Bank NYC Coalition steering committee, concurs, stating:

“A lot of the housing groups statewide see public banking as one of the things we need to embrace to further the goals of the homes guarantee and community land trusts and other non-speculative housing models.”

Morrison continues:

“North Dakota and New York couldn’t be more different in terms of economies, but it goes to show a lot of people credit the Bank of North Dakota for helping little banks and credit unions flourish. … We’re hoping to learn from what they’re doing in North Dakota and put a New York twist on it.”

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