In 2019, California became the first state to establish a legal framework for municipalities to form public banks. Since the passage of the California Public Banking Act, local governments in the East Bay, San Francisco, Los Angeles, Sacramento, Fresno, Pomona Valley, and the Central Coast have taken steps toward exploring public banks, with some passing legislation or allocating municipal resources.
Public banks are government-owned, socially responsible financial institutions that enable municipalities to reclaim public funds and invest directly in their communities. Their loans support projects that serve local needs, reinvesting profits to generate sustainable growth and public benefit. Public banks have the potential to spur inclusive and equitable economic growth including affordable housing, green energy infrastructure, and expanding access to capital for local community financial institutions to support small businesses. Public banking advocates believe that communities of color would especially benefit from this alternative to the private banking system.
On November 19, 2024, BA AFN led a discussion on:
- the benefits of public banking and its potential to build community wealth and meet local needs;
- the roadmap to establishing a public banking system throughout California; and
- catalytic philanthropic investment opportunities to make public banking a reality in California.
Speakers
Bianca Blomquist, Small Business Majority
Eric Payne, The Central Valley Urban Institute
Trinity Tran, California Public Banking Alliance
Sophia Rodriguez, Y&H Soda Foundation
Rebeca Rangel, Asset Funders Network
