Key Organizations
Bank of North Dakota
The most prominent and oldest public bank in the United States (established 1919). The Bank of North Dakota (BND) is often held up as a model for current public banks, because of its role in the state’s financial health and its long-term profitability.
California Public Banking Alliance
A coalition of local organizations in California trying to open AB 857 local public banks in their areas. The California Public Banking Alliance (CPBA) also works toward statewide and national public banking legislation. Friends of the Public Bank East Bay is a member of the CPBA.
Public Banking Institute
The Public Banking Institute (PBI) is a long-established national advocacy organization working on making public banking a reality.
California Reinvestment Coalition
A California nonprofit corporation whose 300 member organizations provide services to low-income communities and communities of color. CRC advocates for bank and corporate investment, lending, and financial services that expand access to affordable housing, small business ownership, good jobs, and other resources that build household and community wealth. CRC is partnering with the California Public Banking Alliance on legislation which would be the first step to turning the I-Bank into a state public bank.
Department of Financial Protection and Innovation
(Formerly the Department of Business Oversight) the Department of Financial Protection and Innovation (DFPI) is the agency that sets all regulations for California businesses, including banks, and charters all California banks. The agency has currently proposed draft regulations for California public banks, which are being reviewed.
Federal Deposit Insurance Corporation
The Federal Deposit Insurance Corporation (FDIC) is a federal agency that provides deposit insurance to depositors in U.S. banks and savings and loan associations. Maximum FDIC insurance is $250,000, so public bank deposits will not be substantially covered by FDIC insurance; nonetheless, AB 857 requires FDIC approval for California local public banks.
Federal Reserve
The Federal Reserve is the considered “central banking system of the United States of America.” The Federal Reserve is not a governmental agency, but works extremely closely with the U.S. Treasury Department. It provides many services to U.S. banks, including its “discount window,” where banks regularly borrow money overnight at very low rates.
I-Bank
The California State Infrastructure and Economic Development Bank, commonly referred to as the I-Bank, is not really a bank but a revolving loan fund. The state contributes money to the I-Bank, and the I-Bank lends it to small businesses and nonprofits. The California Public Banking Alliance is drafting and supporting legislation which is the first step toward converting the I-Bank into a true state public bank.