AB 857 – Public Banking

California Assembly Bill 857 proposes to allow local governments to apply for a banking license from the state, so cities, counties, or regions could establish their own public banks. A public bank is one that’s owned by a government, accountable to the public, and managed by professional bankers. 

“Public banking is one way we can start restoring economic power to our communities,” said Sushil Jacob, Senior Staff Attorney for Economic Justice with the Lawyers’ Committee for Civil Rights of the San Francisco Bay Area, one of CPBA’s founding members. “Wall Street banks routinely deny small business owners of color access to the credit they need to grow their businesses. When business owners of color do manage to get these loans, the fees and interest rates are often higher. These discriminatory patterns must end and the City can lead the way in providing an alternative.”

AB 857 will mobilize capital to take on the affordable housing goals that Assemblymembers Santiago and Chiu have already come together to champion.

UPDATE: Signed into law!