A little noticed outcome of the recent midterm elections was a ballot referendum in San Francisco. The voters approved a municipal finance corporation that may seek a bank charter in the near future.
The full account can be found in this Next City article (link). The lead tells the story:
Proposition B created a municipal finance corporation that could potentially seek a bank charter in a few years. Meanwhile, Berkeley’s ballot measure to fund an East Bay public bank fell short.
Now What?
This is just the beginning of a feasibility process to potentially seek a bank charter or other financial solution. But might a cooperative credit union be able to do much the same in helping manage public money and funding city priorities.
Could this be an opening for the credit unions operating in the Bay area to step up and say they want to be part of the appraisal process?
Public banking is not a new concept. In North Dakota, the state owned bank, begun in 1919, has become central to the state’s financial management, working closely with other financial institutions including credit unions. (link)
The Opportunity: Innovate with a public-private partnership, or watch others take up the challenge?