Public Banking -- it already works in the United States and is catching on! 18 States now scoping it out.

What's Happening in your State?

Find out by clicking on the map or here. Are you interested in starting a county-owned bank? Visit our new county bank webpage here.

Public Banks are ...

• Viable solutions to the present economic crises in US states.
• Counter-cyclical, meaning they extend credit precisely when private banks contract credit, creating a "soft" landing.
• Potentially available to any-sized government or community
able to meet the requirements for setting up a bank.
• Owned by the people of a state or community.
• Economically sustainable, because they operate transparently according to applicable banking regulations
• Able to offset pressures for tax increases with returned credit income to the community.
• Ready sources of affordable credit for local governments, eliminating the need for large “rainy day” funds.
• Required to promote the public interest, as defined in their
• Constitutional, as ruled by the U.S. Supreme Court

... and are not

• Operated by politicians; rather, they are run by professional
• Boondoggles for bank executives; rather, their employees are
salaried public servants (paid by the state, with a transparent pay structure) who would likely not earn bonuses, commissions or fees for generating loans.
• Speculative ventures that maximize profits in the short term,
without regard to the long-term interests of the public.

Common Misperceptions of Public Banking

In every venue in which PBI has presented the case for public banking, we have heard very similar counter arguments against it. Read them here.

Read what Thomas Edison had to say about the government issuing money rather than bonds.

August Newsletter, County-owned Banks, Sonoma County Spotlight

Why Public Banking?

Public banking frees the credit potential of public revenues and then harnesses this public wealth to create sustainable, abundant and affordable credit. This credit -- our credit -- supports our economy and citizens if it is then used to build economic capacity (think renewable energy, sustainable agriculture, etc. -- things that private banks do not fund).

PBI is committed to public banking becoming a mainstay of support for the new economy.

Youthful Speaker at PBI Conference Gets 2.5 million hits

Learn all about the 2012 Public Banking in America Conference here.
Bill Still, Secret of Oz

Did You Know ...?

Public banking was first introduced to the middle colonies in America by the Quakers in the original colony of Pennsylvania. Read about it on page 442 of Ben Franklin's memoirs. Other colonial governments also established publicly-owned banks. The concept was later embraced by the State of North Dakota, the only state to currently operate its own bank.

As of the spring of 2010, North Dakota was also the only state sporting a major budget surplus; it had the lowest unemployment and default rates in the country; and it had the most community banks per capita, suggesting that the presence of a state-owned bank has helped, not hurt, the local banks. More ...