All articles tagged with #public banking
The Bank of North Dakota, the U.S. only surviving state-owned bank, continues to operate profitably under Republican leadership despite its socialist origins. While the institution faces skepticism from commercial banks, it is increasingly cited by progressive politicians as a model for new public banking initiatives in states like Washington and California.
Berkeley residents will vote next week on Measure Z, a proposal to fund a regional public bank through a six-year parcel tax. The measure, inspired by North Dakota’s state bank, aims to provide low-interest loans for affordable housing and small businesses. Supporters cite high rent burdens and capital shortages, while opponents warn of fiscal risks and lack of local safeguards.
The state-owned Bank of North Dakota's unique structure has garnered attention in the wake of the recent banking crisis, with some speculating that it could serve as a template for other states to create their own banks. The bank is the only general service bank in the US that is owned and operated by a state, and is not a member of the Federal Deposit Insurance Corporation. While advocates argue that a public bank would enable better financing of infrastructure projects or extend banking services to underserved communities, there are substantial start-up costs and risks to taxpayers, as well as concerns about potential political interference.