SAVE MONEY
A public bank will keep taxpayer dollars in Los Angeles and reinvest them in local projects instead of sending them to Wall Street banks. Right now, nearly half the cost of public infrastructure comes from interest and fees. A city-owned bank can lower these costs and return loan revenues to the community.
The Bank of North Dakota, the only state-owned bank in the U.S., shows what’s possible. With a stronger credit rating than JPMorgan Chase and Goldman Sachs, it has consistently generated returns, lowered student loan costs, and quickly delivered small business relief during the pandemic. A Los Angeles public bank, operating under strict oversight, can bring similar benefits while avoiding risky practices.
COMMUNITY DEVELOPMENT
The LA public bank will invest in long-term community priorities like affordable housing, clean energy, conservation, and co-ops. By partnering with local lenders, it can provide flexible, low-cost financing for public works, economic development, and job creation.
Example uses include:
• Financing affordable housing and stabilizing neighborhoods by reducing the cost of credit and consolidating funding streams
• Supporting local banks, credit unions, and CDFIs with capital to expand lending in underserved areas
• Lending to small businesses and infrastructure projects without relying on costly municipal bonds
• Funding green energy projects, following the example of Germany’s public banks, which financed over 70% of its renewable energy buildout
• Backing businesses and homeownership models often excluded by corporate banks, including women-owned businesses, worker co-ops, and communities of color
• Offering low-interest or interest-free loans for education, helping residents build a more stable future
FISCAL RESPONSIBILITY
TThe Los Angeles Public Bank will be governed with transparency, integrity, and a clear public mandate. Its board and staff will be held to high standards and required to align lending practices with the bank’s mission. Unlike private banks that focus on profit, this bank will be accountable to the public and operate in service of community needs.
LOCAL AUTONOMY
Los Angeles pays over $1 billion a year in debt service to Wall Street banks that invest elsewhere and fund harmful industries like fossil fuels. A city-owned bank would keep public dollars local and give residents more control over how funds are used. Instead of maximizing profits for private investors, public banks reinvest earnings into the community, expanding lending and supporting local priorities.