PUBLIC BANKS

Taking our economy back from Wall Street and moving it local to Main Street

Presenters:

WHAT ARE PUBLIC BANKS?

Owned by a country, state, county or city Depository for that institution’s funds and revenues, keeping

them local Transparency required by law Directed to serve the public good Bank invests in the community Does not need to maximize profits w/ no CEO bonuses attached

to making those profits

BENEFITS OF PUBLIC BANKS? Keeps community owned funds (government’s deposits) in the

community with increased security of those funds Mandated to provide affordable loans to the community Partner – not competitor to community banks Increased revenue for the community without raising taxes Strengthens local economy Can respond quickly/effectively to local needs such as disaster

relief Keeps credit flowing, thus supporting local businesses and

creates local jobs

MANDATED TO PROVIDE AFFORDABLE LOANS Disaster relief Farm loans Student loans Renewable energy, energy conservation, etc. loans to

homeowners * Business startup and expansion Business operating capital Development loans Can “buy down” interest rates

KEEPS COMMUNITY FUNDS IN THE COMMUNITY

Closed-Loop Banking Money is invested locally Saves project financing costs

Does this without increasing taxes!

STRENGTHENS THE LOCAL ECONOMY Provides needed credit Provides lower interest loans Invests where Wall Street banks won’t, and community banks

wish they could Supports community banks through loan partnering and stock

purchase loans Stronger local economy increases tax and fee revenue to the

county

A revenue stream without increased taxes!

OUR ECONOMY NEEDS CREDITA key reason for our slow economy is that consumers and businesses have not been able to get credit.

NORTH DAKOTA IS EXCEPTIONNorth Dakota is the exception. North Dakota has a public bank – the Bank of North Dakota (BND)

THE BANK OF NORTH DAKOTAThe Bank of North Dakota (BND) is currently the only public bank in the United States.

Depository for state, county, and municipality funds, tax and fee collections

It pays a competitive (or better) interest rate and annual “dividend” It serves as a “banker’s” bank It serves as a partner to N. Dakota community banks It is not a retail bank – it does not compete with community banks It enables N. Dakota community banks to compete with large Wall St.

banks It supports the health and growth of the N. Dakota banking system by

making shareholder loans to investors in those banks, strengthening their capital base

BND – OUTCOMESThe Bank of North Dakota is a vital contributor to the state’s economy and banking sector.

PUBLIC BANKING AROUND THE WORLDWhile BND is currently the only public bank in the United States, they are common throughout the world.Many countries have public banks. Among them are: Germany Japan China India Russia Brazil New Zealand Costa Rica Chile

PROPOSAL FOR A NEVADA COUNTY PUBLIC BANK Homeowners can get more favorable loans Local businesses get better access to more, lower cost credit Help fill empty storefronts, generate jobs Can help address foreclosure, improve property values Support students attending Grass Valley Sierra College Retirees offered secure investment options that are locally

managed and invested Improve county services without tax increases

A stronger local economy benefits us all…plus: We won’t be supporting too-big-to-fail “Casino” banks

CAN NEVADA COUNTY AFFORD A PUBLIC BANK? Deposits as of May 20121 = $155,889,167 Annual receipts 2011 (forecast) 1 = $406,572,498 CAFR funds Pension funds

Based on “healthy” banking financial ratios, a Nevada County public bank could loan as much as $160 million dollars. The question becomes: “How much credit is actually needed?”

1 - June 2012 Treasury Report

WHAT YOU CAN DO?

Help survey credit needs of county businesses Contact your supervisor Let your network know “Letters to the Editor” Join the public bank working group: Economic Liberty for Main Street

PUBLIC BANK Q& A

Taking our economy back from Wall Street, Our democracy back from K Street, and moving them local to Main Street.

Taking our economy back from Wall Street, Our democracy back from K Street, and moving them local to Main Street.

www.mainstreetforumnc.org