Councilmember Derek Green and Public Bank Coalition Launch Monthly Series: Financing Philadelphia’s Future
The series focuses on Green’s current legislative initiative to create a Philadelphia Public Bank
PHILADELPHIA— This past Tuesday, Councilmember Derek Green (At-Large) and the Philadelphia Public Bank Coalition premiered the first in a monthly series of live, interactive shows focused on creating a public bank in Philadelphia, with attention to legislation that Green introduced to City Council on January 28. Eleven other Councilmembers have co-signed the bill, indicating a strong level of support in Council. This first of the half-hour shows, which will be aired on the last Tuesday of every month at 4:30 pm, included Green and members of the Coalition, who are co-producers of the series. This local initiative for greater public control over the City’s finances is part of a nationwide public banking movement that includes over 25 municipal and state public bank campaigns.
In his opening remarks, Green said that this bill is his top priority for the year. “Public banking is an idea whose time has come,” Green said. “And Philadelphia is at the vanguard of this movement. We stand the chance of being the first municipality in this country to establish our own bank.”
Fifty participants attended on the Zoom platform and were invited to ask questions of the Councilmember, as well as Coalition members, Kay Lasker and Peter Winslow. The show was moderated by Vanessa Lowe, Coalition member and co-chair of the Power Interfaith Economic Dignity Team. Lasker is a former small business owner with a keen interest in supporting local entrepreneurs and Winslow is president of A SMART Collaboration. Some of the questions offered by participants included, What is the pathway forward for this legislation? Are there other successful models of public banks? Who would run the bank? How would the funds be allocated? What are the barriers to passage of the bill?
Green reported that the bill is currently under review. “It’s hard to say when we will bring it for a vote, because we want to be assured of success when the bill does come before Council—there are many details we want to get right.” He indicated that an RFP has been recently issued by the City to obtain counsel with expertise in banking law and that this counsel will help sort out legal and technical issues. A solid implementation plan will help push back against the opposition that will undoubtedly show up.
Regarding successful models of public banks, Winslow pointed to the Bank of North Dakota, which has been in existence profitably for over one hundred years, offering low-cost student loans to anyone attending a state university. The bank has also helped the state weather crises such as the financial crisis of 2008 and a devastating flood, as well as the current pandemic. Other public banks have existed successfully for years alongside private banks in other countries, such as Germany and Japan.
In terms of the running of the bank, the legislation proposes an independent board of citizens which will include banking experts with experience in small banks and credit unions, community members with strong records of involvement in local issues such as housing, racial and environmental justice, as well as supporters of local business, including the Co-operative movement. “Anyone starting a small business can have difficulty obtaining credit,” Green offered, “but co-operatives have an especially difficult time, because of their unusual structure. This is something a public bank could help with.”
“Philly needs this bank,” offered Kay Lasker. “We have the power, if we believe it, to create a thriving economy for all of us.”
The next show in the series will be March 30, 4:30-5 pm, a conversation highlighting the larger public banking movement with Walt McRee of the Public Banking Institute.
Where: Zoom, https://us02web.zoom.us/j/85835928783
For more information: Philadelphia Public Bank Coalition, info@philapublicbanking.org