Credit unions are a solid alternative to big banks. They’re owned by their members, not private shareholders, which means their focus is on serving customers rather than maximizing profits. They’re accountable to their depositors and often provide more affordable banking services. However, credit unions are not accountable to the general public as a whole, and they are limited in how much capital they can access and deploy.

Public banks, by contrast, are owned by governments and accountable to the public through elected representatives. They are designed to work alongside, not compete with CDFIs, credit unions, and community banks. A public bank can support local financial institutions by making joint loans, providing access to credit, purchasing mortgages, and other forms of cooperation that increase lending power. This helps credit unions and community banks expand services without relying on Wall Street. North Dakota, which has the only state-owned public bank in the U.S., also has more credit unions and community banks per capita than any other state.

Public banks are not subject to the same restrictions as credit unions, which allows them to access capital at lower costs and lend with greater flexibility. Cities and states manage large revenue streams and reserves, and public banks offer a way to invest those funds directly into local priorities, like affordable housing, climate-ready infrastructure, and small and mid-sized businesses, without the high fees and barriers that come with commercial banking.