Philadelphia Inches Closer to Creating a Public Bank.

Philadelphia is one step closer to creating a public bank, a taxpayer-owned financial institution owned by a government body rather than private investors.

Why it matters: Black and brown businesses have more difficulty obtaining credit compared to their white counterparts. A public bank is supposed to be a way to provide loans and boost access to credit for business owners of color.

What they’re saying: “If we’re able to take those businesses and give them more access to credit to help their cash flow, they can hire more people … and by doing that, hopefully we can reduce the poverty in our city,” Councilmember Derek Green, who spearheaded this effort, said.

Between the lines: Philly can’t make its own bank immediately because Pennsylvania doesn’t have legislation to allow cities to do that.

How the PPFA would work: The mayor will appoint a nine-member board of directors to oversee the bank, and they will serve six-year terms.

Zoom out: The Bank of North Dakota and The Territorial Bank of American Samoa are the only two public banks in the U.S.

What’s next: The city still needs to find resources for this to work, and that won’t be finalized until the budget passes later this year.

Axios

by Taylor Allen

Mar 7, 2022



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