WASHINGTON — April Fenall wants to electrify and upgrade her fleet of California delivery vehicles, but she thinks her business with a conscience is too small to interest her big bank.
So a new proposal in the area has caught her eye: a public bank, aimed at filling the gaps left by traditional financial institutions that some say often shun micro or minority businesses. “Money is a public utility, and banking should be a public utility, as well. Right now, it’s a private utility,” said Walt McRee, the Public Banking Institute’s chair emeritus.Advocates say public banks ensure wealth stays local and meets neighborhood needs.
Today there are more than 900 public banks globally, holding upwards of $49 trillion in assets, he said. A spokesman for the US Treasury declined to comment on whether it is tracking the rise in public bank proposals or its stance on the issue. A widely watched effort in Philadelphia to create a proto-public bank was rejected by the mayor last month.
“We’re also concerned about farmers. They need low-cost capital to acquire farmland, and they can’t get the loans they need,” Ms. Caplan said.