The term “public bank” as it is used by the Pennsylvania Project and the Public Banking Institute refers to a bank formed by a governmental jurisdiction (state, county or municipality) that is capitalized with public funds which are then leveraged into affordable credit to be distributed into that jurisdiction’s economy in partnership lending with existing community commercial banks, credit unions, other financial institutions, existing economic development agencies and governments. Our model is the 93 year old and hugely successful Bank of North Dakota (BND).
The mission of a public bank is generally to stimulate economic and social development, jobs creation, a strong local banking and credit market and sound municipal finances, by means of partnership lending. Profits are returned to the general fund as non tax revenue and/or reinvested in the bank’s lending programs.
An initiative of
The Pennsylvania Project, Inc.
A non-partisan, not for profit
Public policy advocacy organization