KRON4 – The San Francisco Board of Supervisors voted unanimously to create the first municipal bank in the nation! The plans include a business & governance plan for a publicly-owned municipal financial corporation and then converting it into the San Francisco public bank.
Read SF supes vote unanimously for first municipal bank in nation.
The San Francisco Chronicle discusses the proposal to create the nation’s first municipal public bank in San Francisco to address the city’s housing crisis and economic challenges. Modeled after the Bank of North Dakota, the plan aims to fund housing projects for low- and middle-wage workers, support small business recovery, and promote a carbon-neutral future. The bank would partner with private banks rather than compete with them, generating funds that enable community banks to provide financing at lower interest rates. The benefits of a public bank include facilitating affordable housing and jump-starting small businesses. The article quotes Sylvia Chi, the Alliance’s Legislative Co-Director and member of the San Francisco Public Banking Working Group: “If weâre going to redevelop the Westfield Mall into something, they should use green building techniques and make sure itâs as efficient and sustainable as possible,â Chi said.” Although the bank’s cash reserves would be modest at first, it could grow to channel significant funds into community initiatives over the next decade. The proposal has been sent to the Board of Supervisors for examination and approval, and it aligns with California’s authorization for cities to explore public banking. The Bank of North Dakota’s success and impact on various sectors provide insights into how a public bank could benefit San Francisco.
Read the article in the San Francisco Chronicle.
The Los Angeles City Council has voted to fund the first phase of a public bank that would empower communities and support projects driven by public interest. A public bank would be more beneficial than private banks in serving Los Angeles’ Black and Latino communities, small businesses, green energy initiatives, and affordable housing projects. To tackle our housing crisis, the LA public bank could build or preserve over 17,000 affordable housing units within 10 years, assist with construction loans, convert housing into affordable stock, provide mortgage assistance, and prevent the conversion of affordable housing into upscale homes. Low-income communities of color stand to benefit greatly from a public bank, as it would offer lower-cost debt, free banking, alternative credit scoring methods, and help employees purchase small businesses. It’s a chance to create targeted wealth and job stability for neglected communities. The LA public bank would be funded by deposits from the city, pension funds, and green mutual funds, bypassing expensive Wall Street middlemen. This means more direct access to funds for local government projects. The LA Times interviews key figures, discussing the far-reaching impact of the public bank on communities across Los Angeles, including CPBA and PBLA co-founder Trinity Tran.
Read the coverage in the LA Times.
California cities, from Los Angeles to San Francisco to the East Bay, are moving full steam ahead on public banking! LA recently approved funding for Phase 1 to plan and implement Public Bank Los Angeles, SF Public Bank is working to fund a Municipal Finance Corporation that will scale up to a public bank, and Public Bank East Bay is making moves on a business plan for a regional public bank. California leads the way in the movement to reclaim public funds from Wall Street banks and reinvest them in local communities.
Read the article on Next City.
The California Public Banking Alliance and Public Bank East Bay organizer Susan Harman started a women’s public banking group with Women’s International League for Peace and Freedom to encourage women activists across the country to get involved in the public banking movement and promote the idea of a more equitable and locally-focused banking system that serve the needs of the community, prioritizing accessibility, transparency, and sustainability.
Read in Ms Magazine: Why Banking for the Public Good is no Pipe Dream.
The Alliance’s Rick Girling penned an op-ed discussing the banking system’s shortcomings following Silicon Valley and Signature Banks’ collapse. Advocates propose public banks to offer fair services and break the cycle of bank failures and bailouts.
Read the article on El Tecolote
Artwork: Mural Doctor
The public banking movement is gaining momentum in the United States as more people seek alternatives to traditional banking institutions. Unlike traditional banks that prioritize profit above all else, public banks aim to promote community development and social justice. Piper French, a journalist with Noema Magazine, recently spoke with Trinity Tran, George Syrop, and other organizers across the country to discuss the movement and its goals.
The rise of public banking is a response to the growing discontent with the banking industry’s practices, particularly in the wake of the 2008 financial crisis. Many people see public banking as a way to reestablish trust and accountability in the financial system. Public banks can prioritize the needs of local residents and businesses by focusing on community investment rather than profits for shareholders.
Read the article in Noema Magazine.
San Francisco is taking bold steps towards establishing a Municipal Finance Corporation that is set to become a public bank within the next three to five years. The city aims to launch the $50 million Municipal Finance Corporation, with a focus on financing infrastructure projects, affordable housing initiatives, and small businesses.
The establishment of a public bank in San Francisco has been a long-awaited goal for many activists and community leaders. Public Bank SF is expected to bring more transparency and accountability to the banking industry, putting the needs of the community first instead of prioritizing profits for shareholders.
The city’s decision to create a Municipal Finance Corporation is a crucial step in achieving this goal. The corporation will act as a bridge between the city and its residents, providing access to low-cost credit and financial services that are tailored to the community’s needs.
Read the article on SF Chronicle.
Oakland Post – Vice Mayor Rebecca Kaplan, a longtime supporter of strengthening funding for local small businesses and important public projects, successfully moved to approve the resolution along with the viability study. Kaplan had proposed the initial public bank study in the previous Oakland budget, and the regional multi-city collaboration that allowed the public bank effort to get to this stage.
The City of Oakland took another step toward establishing the Public Bank of the East Bay.
The Oakland Finance and Management Committee voted to approve forwarding District 3 Councilmember Carroll Fifeâs resolution to the City Council meeting on Dec. 20, 2022, with the intent for the City of Oakland, in collaboration with Alameda County, City of Berkeley and City of Richmond, and additional cities as interested, to establish the bank.
Vice Mayor Rebecca Kaplan, a longtime supporter of strengthening funding for local small businesses and important public projects, successfully moved to approve the resolution along with the viability study. Kaplan had proposed the initial public bank study in the previous Oakland budget, and the regional multi-city collaboration that allowed the public bank effort to get to this stage.
âI want to thank everyone who has been working for many years to bring a public bank to the East Bay â not just to the City of Oakland â a regional collaborative of multiple governments that by standing together, can strengthen our economic opportunity and our ability to affordably finance needed projects and ensure access to funding for local small businesses and underserved communities,â said Kaplan.
The need and support for a public bank comes from the failing business model of many corporate banks that handle the vast majority of public funds in the East Bay and around the country which have consistently prioritized profits and serving the well-connected over community needs.
The biggest example of the failure of corporate banks is the Great Recession of 2008 when many banks engaged in predatory foreclosures and destabilized. But the Bank of North Dakota, the nationâs oldest public bank, was able to withstand the chaotic market trend while growing their fund and continuing to provide small business and student loans as well as economic and workforce development funds.
As reported in their mission statement, the vision for the Public Bank East Bay is to: âinvest public monies from participating governmental agencies to meet the needs of local communities.
âPBEB will seek to return a reasonable, but not excessive, profit to its stakeholders by making economically sustainable loans and providing a high level of service to its partners and stakeholders.
âIt will adhere to the principles of the United Nations Declaration on the Rights of Indigenous People, and will prioritize environmentally regenerative, culturally equitable and participatory practices that reverse discrimination against members of economically and socially marginalized communities.â
Originally posted in Post News Group.
Public banks can drive the renewable energy revolution by investing in clean energy alternatives, divesting from fossil fuels, and building community wealth. Read “Public Banking for Climate Justice” by the Alliance’s Communications Director, Rick Girling, to learn more. “If we want a future other than ecological collapse, we need to remake the financial system that drives fossil fuel expansion. Public banks are key to this financial reformulation because they can be designed to require that climate action be a central focus of their lending.”
Read Public Banking for Climate Justice, published in the November/December 2022 issue of Dollars and Sense.
