A new survey found New Yorkers widely support public banking.
The Community Service Society of New York survey showed more than half of people would support creating a public bank, run as a nonprofit by a local or state government, rather than being owned by private investors. Bills to create a public banking system are being considered by the state Legislature and the New York City Council, but have yet to pass.
Tousif Ahsan, public banking campaign organizer for the advocacy group the New Economy Project, said public banks can better support community interests than big Wall Street banks.
“These are banks that historically redline Black and brown New Yorkers, low-income New Yorkers,” Ahsan explained. “By charging these communities higher interest rates, closing bank branches in these neighborhoods or charging them overdraft fees.”
A New Economy Project report found some banks have not lent to people of color in New York City at the same rate other groups received loans. Challenges to passing public banking laws include opposition from large banks and an overall lack of political will to change the banking system. But after multiple bank seizures in 2023, public sentiment for change has grown, among New Yorkers and some elected officials.
New York is one of more than 30 states considering creating a public bank. The only state to have one now is North Dakota, which began in 1919. Ahsan argued North Dakota’s public bank serves as a beacon for how beneficial they can be.
“During the pandemic, the Bank of North Dakota was able to mobilize public dollars to get PPP funding to more small businesses per capita than any other state in the country,” Ahsan pointed out. “And make sure there’s a public entity that is there to provide financial support to people in times of need.”
Aside from New York City’s public banking bill, Rochester is also looking to develop a public bank. Lawmakers supporting the bill feel it would help reverse historic disinvestment in Rochester and allow more residents to get loans commercial banks might not approve.
Edwin is a reporter and producer in North Tonawanda, New York. He’s previously reported for the Niagara Gazette and the Ithaca Times. Edwin got an early start in radio interning for WBFO-88.7FM, NPR’s Buffalo affiliate. In 2018, he graduated from SUNY Buffalo State College with a B.A. in Journalism, and in 2022, graduated from Syracuse University with an M.S. in Communications.