Presentation at @AlamedaCoDem from @publicbankeb on Public Banks! With AB857 going into effect, California cities - or groups of cities -can start #PublicBanks! 2 banks will be chartered each year, and Public Bank of the East Bay hopes to be one of the first, in 2020 or 2021. 1/
The main purpose of public banks is to do things that credit unions or community banks aren't big enough to do, such as holding deposits and providing banking services for cities and counties, financing infrastructure and affordable housing. 2/
California public banks will also be able to offer check cashing services and short term loans to the unbanked. Otherwise, retail operations will be limited - the goal of public banks is to complement, not compete, with credit unions. 3/
Public banks will also produce profits that go back to the public. The public Bank of North Dakota delivers a 17-18% return on investment. (They also avoided the recession and subprime mortgage crisis, since they didn't get involved in that kind of risky stuff). 4/
The Public Bank of the East Bay's plan is to serve the entire East Bay, both Alameda and Contra Costa Counties. Elsewhere in California, 9 other cities or regions are planning public banks. 5/
They're currently working on business plan, chartering, and an interim board of directors. If you've got relevant skills and want to be a banker, here's your chance. 6/
