DC Public Banking

The D.C. Department of Insurance, Securities, and Banking released its long awaited feasibility study on public banking undertaken in 2018. The report details needs faced by D.C. residents, businesses, neighborhoods, and other stakeholders, covering Affordable Housing, Public Infrastructure Financing, Student Loans, Small Businesses, Non-Profits, Environmental and Sustainability, Business and Economic Development, and Consumer Issues. It also explores legal, financial, regulatory, and governance challenges to establishing and operating a public bank in the District.

The DC Department of Insurance, Securities, and Banking is conducting focus groups in August for the feasibility study for a potential DC public bank and is seeking participants for them.  There are 15 different topics being discussed, and you're invited to join the discussions by emailing your interests to DISB by July 31. Provide your name and contact information and the name of the focus group(s) on which you would like to serve. The interest areas of the focus groups are below.

On March 15, 2018, the Cleveland Park Citizens Association hosted a public forum Banking for the Public Interest -- Not Private Profit. The presenters explored proposals for public financial institutions being explored by the DC Council, the green finance authority or "green bank" and the public bank. The five presenters include the following:

• Mary Cheh, Ward 3 DC Councilmember
• David Grosso, At-Large DC Councilmember
• Zach Weinstein, DC Reinvest coalition and DC Working Families
• Amir Kirkwood, Amalgamated Bank
• Ruth Caplan, DC Public Banking Center

By Oscar Perry Abello -- Next City

A groundswell of interest in public banking has advocates pondering how city-owned banks could transform the way municipalities collect and spend their money.

It’s no surprise that Malia Cohen worries about what local public dollars are doing. As a member of the San Francisco Board of Supervisors, the municipal legislative body, it’s her job to know how, where and why the city’s money is coming in and going out. But recently, Cohen has joined a growing number of public officials around the country who are wondering what happens in between — what happens when the money in the city coffers goes to sleep at night.

Read the full story here.

On Sept. 26, 2017, Ward 3 Democrats hosted a panel discussion to explore three options to reduce climate change -- by financing the changes known to be effective. All three options are being explored at the DC Council, including a Green Finance Authority, a DC public bank, and a carbon tax, which are described in greater detail below.

Panelists included Ward 3 Councilmember Mary Cheh, DC Dept. of the Environment Director Tommy Wells, Natural Resources Defense Council's Sarah Dougherty, DC Public Banking Center's Larry Martin, and Chesapeake Climate Action Network's Mike Tidwell. The event was organized by Ward 3 Dems' Transportation and Environment Task Force and moderated by Ruth Caplan.

The DC Public Banking Center was created several years ago to advocate for establishing a public bank  where municipal government revenues are deposited and loans issued to help finance affordable housing, small business and environmental sustainability.  By participating with local financial institutions like Industrial Bank and City First, a public bank will help strengthen our local banks and prevent them from being gobbled up by Wall Street.

Now we have very good news to share!  Thanks to initiative taken by Councilmember David Grosso, the FY18 DC budget has $200,000 to fund a feasibility study for a public bank. The funding came through the Committee on Business and Economic Development, chaired by Councilmember Kenyon McDuffie.  The study will be done under the auspices of the DC Dept. of Investment, Securities and Banking (DISB). 

We will be monitoring this study very closely to be sure that it covers loans for affordable housing and environmental sustainability, as well as for small business development.

Wall Street will not be happy when they see this moving forward, so it is urgent that we strengthen our base of support.  Please be sure to sign our petition, urge your friends to sign, and email your contacts.

DC can lead the way!

Good news!  Thanks to action by Council Member Grosso, the DC Council is funding a public bank feasibility study in the city’s budget for next year.  His request went to the Committee on Business and Economic Development chaired by Council Member McDuffie.  DC Public Banking Center is in full support of this initiative. Why is the Council taking action now?