The San Francisco Board of Supervisors has officially taken a significant step toward creating the nation’s first municipal public bank with a unanimous vote.
This resolution, introduced by Supervisor Jackie Fielder, encourages Mayor Daniel Lurie’s administration and city departments to consider funding for a proposed “green bank.”
The green bank would be aimed at supporting renewable energy projects, affordable housing initiatives, and small businesses, particularly those underserved by traditional banking institutions.
In a press release, Supervisor Fielder emphasized the importance of the green bank as a response to the rising cost of living and the urgency of the climate crisis, stating, “A green bank is how we take our money back from Wall Street and give it back to our communities.”
She further elaborated that the initiative would allow for reinvestment into vital community needs, such as affordable housing and clean energy.
Misha Steier, a spokesperson for the San Francisco Public Bank Coalition, remarked that the unanimous vote sends a clear message about the city’s commitment to building a financial institution that prioritizes public good over private profit.
Steier stated, “By reinvesting our resources into our own communities, we can tackle the affordability and climate crises head-on.”
This resolution builds upon a plan approved unanimously by the Board of Supervisors in 2023, which outlined a phased approach.
Initially, the initiative would function as a non-depository green bank focused on targeted lending. Following a three-year period, it has the potential to transition into a full deposit-taking public bank, setting San Francisco apart as the first city in the United States to establish such a bank.
The project is made feasible by the California Public Banking Act, the only legislation of its kind in the nation, which legalized municipal public banks.
To advance the establishment of the green bank, a key next step is hiring a Green Bank Coordinator. Although the city has yet to allocate funds for staffing or capitalization, the unanimous vote indicates strong political will to move forward with the initiative.
The proposed green bank aims to address multiple urgent community needs, including financing renewable energy projects, supporting affordable housing development, and providing equitable, low-cost capital to small businesses.
The San Francisco Public Bank Coalition describes the green bank not merely as a financial institution but as a pioneering model for community wealth and an opportunity to promote financial democracy.
The coalition’s mission focuses on educating residents about the implications of the city’s relationships with private banks while ensuring that any future public bank adheres to principles of racial, social, economic, and environmental justice.
Recent polling indicates that 67 percent of likely voters in San Francisco support the establishment of a public bank.
Supporters believe that this initiative could play a crucial role in addressing the pressing challenges of affordability, housing, and climate, while ensuring that public funds are utilized for the public’s benefit.
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