Northeast-Midwest Institute Releases New White Paper on the Potential of Public Banking as a Catalyst for Green Infrastructure and Investment

The Northeast-Midwest Institute today released a new White Paper that explores the potential of pubic banks as a tool for fueling green infrastructure and investment.  This report lays out the major models of public banking around the world and in the United States and examines their various advantages, obstacles, and feasibility of implementation. Specifically, it explores the Bank of North Dakota, the German Sparkassen Banks, and India’s Public Sector Banks. It also examines the current political momentum behind public banks in NEMW states and looks into how the concept has built increasingly more widespread support over the years throughout both regions.

This report then lays out the main policy breakdowns that could be addressed by the utilization of a public bank, particularly uncompetitive financial markets, lack of development, state fiscal health, and efficiency issues.  In response to each problem, the report details how public banks could serve as a remedy.  To combat these issues, the report has outlined a set of recommendations for how a state should create, structure, and regulate a state bank to best achieve its goals and address the problems facing the state.

Ultimately, this report recommends that all NEMW states adopt a public bank and do so with close attention to their circumstances and needs, tailoring the bank’s specifics to the nuances of the state. Public banking is not a panacea, but it can move states in the right direction for addressing critical investment gaps and realigning state resources with state interests.

The full report is available here.