What's Next for Public Banking?

V.3, N.22

In 2023, the Bank of North Dakota (BND) posted profits of nearly $200 million. North Dakota is a state with 783,000 residents, about the same number of residents as Seattle. Seventeen other US cities, 85 counties, and 46 states have greater populations and larger financial marketplaces that could generate even better returns. You would think that every other city, county, and state in the United States would be working assiduously to create their own version of BND and develop this huge, new financial resource to support priorities like affordable housing, net zero energy, or more BIPOC-led businesses. Some jurisdictions, like California and New Jersey, are. But the rest have been cowed by the Wall Street banking community to desist. How dare you try to take away our business for urgent local needs?

Trying hard to change this is the Public Banking Institute (PBI), founded after the 2008 financial crisis. In this issue, we’re pleased to interview the new President and Chair of PBI, Walt McRee.