There are two existing public bank models that can help inform the governance structure of the Los Angeles Public Bank: the Bank of North Dakota and the Sparkassen system in Germany.

Bank of North Dakota: The Bank of North Dakota is governed by a board of three elected state officials who set policy in the public interest. It also includes an advisory board made up of bankers who provide input but do not control decision-making.

Sparkassen in Germany: The Sparkassen banks operate under a three-part board structure. One-third of board members are elected by a regional parliament, one-third are employees, and one-third are community members with proven economic expertise. This model combines public accountability, worker representation, and financial experience.

For Los Angeles, it will be up to elected officials, banking professionals, and community stakeholders to design a governance model that meets the city’s needs while staying true to the bank’s mission of social and environmental responsibility. The structure should ensure transparency, strong oversight, and a clear public mandate.

One possible path was suggested by Michael Brennan, a researcher at The Democracy Collaborative, who proposed incorporating Los Angeles Neighborhood Councils into the governance framework. These 99 councils each represent about 40,000 residents and offer localized input on citywide issues. Brennan’s report, Constructing the Democratic Public Bank: A Governance Proposal for the Los Angeles Public Bank, explores how neighborhood-level participation could help shape a more democratic and accountable public bank.