Endorse the Movement!
We, the undersigned organizations, urge our public officials to support the creation of a public bank owned by the people of Philadelphia.
A public bank is designed to manage public funds, guided by a mission to serve the public good, and managed by banking professionals who earn public servants’ wages.
Such a bank can leverage this pool of public money to fund projects and programs that benefit the public over the long term—the very same projects and programs that are currently being cut from state and local budgets. Rather than entrusting public funds to private banks that seek to maximize profits without regard to location, a public bank leverages those funds to make conservative low-interest investments in local projects and services that are well supported by the community. As loans are paid off, the interest helps grow the bank’s capacity to invest back into the public it serves.
The Bank of North Dakota, founded in 1919, provides a model in this country for the benefits of a public bank. All the state’s assets are used to capitalize the Bank and all the state’s revenues are deposited there. North Dakota was the only state to come through the 2008 recession unscathed. In 2010, it had the lowest unemployment and default rates in the country as well as the most community banks per capita. The Bank makes low interest loans to students, existing small businesses and start-ups; supports local governments by buying municipal bonds; has demonstrated its ability to respond quickly to natural disasters; and returned over $300 million to the state’s general fund in the last decade. Hundreds of public banks, managed according to many different models, are providing similar benefits throughout the world.
We call for Philadelphia Public Bank that would:
– Hold City funds as an authorized depository institution;
– Leverage those funds to promote low-cost housing, renewable energy and energy efficiency, public education, cooperatively-owned businesses, economic development in communities historically denied fair and equitable access to credit, and other programs that serve the interests of people before profit;
– Finance public infrastructure projects and reduce the City’s costs of borrowing;
– Be governed by a Board that is politically independent and includes voices from underserved communities; and
– Operate with transparency, accountability, and democracy under professional management.
Please take all steps necessary to create a public bank for Philadelphia.