To build a solid and trustworthy business plan, the Los Angeles Public Bank will focus on doing the work of a real bank. That means offering basic services like checking accounts, credit card processing, and helping the city manage its cash flow. It will coordinate with city departments and agencies to handle accounts payable and receivable, merchant accounts, wire transfers, ACH payments, payroll, credit card processing, account invoices, adjustments, and banking fees. It will also support the Office of Finance with collecting and reporting taxes, making sure city finances stay organized and accountable.

As it starts managing deposits, the bank can begin making loans and buying interest-earning assets. Lending and investment decisions will follow the bank’s founding mission and be shaped by its Board of Governors. That could include loans to support city infrastructure, small business lending done in partnership with local banks, and financing for key priorities like affordable housing and clean energy. Under the California Public Banking Act (AB 857), public banks are required to partner with local financial institutions, like community banks, credit unions, and CDFIs, so they work alongside existing lenders, not against them.

The Los Angeles Public Bank will operate as a wholesale “banker’s bank,” offering liquidity and support to community banks that need a strong local partner to stay competitive with large national institutions. It could also provide clearing services and interbank liquidity to strengthen the region’s financial network. As the bank demonstrates stability and results, it could expand its role in collaboration with local lenders to lower banking costs and increase access to capital for residents and small businesses.