What is a Public Bank?
A public bank (or municipal public bank*) is a bank that is:
- Owned and operated by the city.
- Chartered by the state of California.
- Governed by its charter and laws passed by the Board of Supervisors and Mayor.
- Operated by banking professionals (not politicians).
- Guided by a Board of Directors.
- Accountable to its shareholders, which are San Francisco residents.
- The City’s Bank, as well as a bank for credit unions and small neighborhood banks
How could a public bank serve San Francisco?
A public bank could provide any benefits to San Francisco that the Board of Supervisors or voters choose. Rather than deposit taxpayer money in commercial banks, San Francisco would deposit taxpayer money in our own bank. Whereas commercial banks can finance or invest in any companies or projects they choose, a public bank would finance or invest only in companies and projects serving the needs of the city and its people. This would allow our bank to provide:
- Low-interest loans for city infrastructure. Half of the total cost of some current infrastructure projects covers interest and fees on loans from big Wall Street banks.
- Low-interest loans for affordable housing, both new construction and capital improvements
- Commercial loans to businesses, in partnership with Community Banks and Credit Unions.
- Loans to Community Development Financial Institutions (CDFIs) to drive community revitalization.
- Financing of other community redevelopment goals and benefits to the city’s residents
Do other public banks exist now?
Founded in 1919, the Bank of North Dakota holds and manages the state's taxpayer money and lends it to serve the needs of the people of North Dakota. It regularly makes the highest return on equity of all U.S. banks allowing for transfers of these profits to the people of the state through low interest loans, increased services or regular deposits to the state general fund which decreases taxes). The BND is structured differently than a city public bank would be, but both contribute to the financial and real well-being of their residents as seen below. American Samoa’s Territory Bank also became operational just this year (2018).
Founded in 1919, the Bank of North Dakota holds and manages the state's taxpayer money and lends it to serve the needs of the people of North Dakota. It regularly makes the highest return on equity of all U.S. banks allowing for transfers of these profits to the people of the state through low interest loans, increased services or regular deposits to the state general fund which decreases taxes). The BND is structured differently than a city public bank would be, but both contribute to the financial and real well-being of their residents as seen below. American Samoa’s Territory Bank also became operational just this year (2018).
Resources on Public Banking
California Public Banking Alliance (CPBA) Resources
- 2022 CPBA Resource Booklet Everything you need to know about public banking in 26 pages.
SAN FRANCISCO LEGISLATION & DECISIONS
- Business and Governance Plan Package for A Public Bank and Municipal Finance Corporation
- RWG Item 1: Governance and Business Plans for MFC (step 1)
- RWG Item 2: Governance and Business Plans for Public Bank (step 2)
- RWG Item 3: Letters from members of the Reinvestment Working Group to the BOS and LAFCo
- RWG Item 4: Letter from the RWG Chair on the Public Bank Governance Plan
- San Francisco Public Bank: Summary of Proposed Approach
- Hearing on Business and Governance Plan SF Board of Supervisors Government Audit and Oversight Committee
- DAPL Screen Resolution
- Public Bank Task Force Resolution
- “Safe, Sound, and Local”
SAN FRANCISCO REPORTS & RESOURCES
BANK OF NORTH DAKOTA
- Profile of BND in Institute for Local Self Reliance
TERRITORIAL BANK OF AMERICAN SAMOA
- Profile of Territorial Bank in American Banker
GERMAN SPARKASSE BANKS
- VIDEO: Forum in Oakland brings to light how Public Banks can fund renewable energy (Public Banking Institute)
- Oakland public bank organizers look to fund renewable energy (East Bay Times)
PUBLIC BANKING INSTITUTE