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Why Public Banking

Perhaps the best argument for public banking can be found simply by looking at the private banking market -- it does not work for everyone. Over 20% of 
California households either do not have a banking account or are unbanked. The risk of expensive overdraft fees is far too high for these people to have and to use a bank account. Municipalities are strapped for funding, but they have to pay high fees to Wall Street to borrow even while placing many times that amount of money on deposit, sometimes in the very same bank. And, finally, the state-legal cannabis industry is unable to find a bank to provide them with services and are forced to transact business in cash, a public safety hazard. 

Benefits of a Public Bank

Satisfies unmet market needs. In the event of market failures, when private banks are not able to meet the needs of the banking market, a public bank is able to be used to fill in the gaps, to provide deposit account and credit services where there are none.
Cost savings. A public bank has a lower cost of doing business (no bonuses, no extreme salaries, no dividends, etc.). The savings can be passed on to borrowers, whether students, businesses or municipalities.
Economic sovereignty. A public bank is a democratic approach to public finance, involving both the public and other stakeholders in the loan portfolio decisions.
Counter Cyclical. A public bank’s equity is not publicly traded on a stock market and is not subject to the same changes in valuation in as rapid a pace as we saw in 2008 and 2009 stock market, where some banks lost upwards to 80% of their equity. Because of this, public banks have the ability to continue to make loans precisely when private banks are terminating lines of credit, ending loan programs, and not accepting deposits.

More on Public Banking

​To learn more about how public banking can create a banking system that is locally owned, see: 
https://ilsr.org/map-shows-how-well-the-bank-of-north-dakota-works/   
or Chris Hedges article here: 
http://www.truthdig.com/report/item/overthrow_the_speculators_20131229
To listen to the Guns & Butter KPFA radio show on public banking: https://kpfa.org/episode/99141/

And there are plenty of public banking articles that can be found using a search engine.  More at www.publicbanking.org 

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