Posted 8 years ago on Nov. 19, 2011, 12:35 a.m. EST by jhurlburt
This content is user submitted and not an official statement
The creation of public banks, owned and operated by individual states, would provide many financial benefits not possible with established corporate banks.
By requiring all state taxes and fees to be deposited to the bank a captive deposit base would be created. This would allow the bank to offer low interest loans to spur local economic development.
Each state could also use the bank as a source for it's own loans. Backed up by the captive deposit base and state owned resources these banks could loan their state money at extremely low rates.... saving each state millions of dollars a year in interest payments.
Currently the only other publicly owned bank in the United States is the Bank of North Dakota, which has helped the state of North Dakota run budget surpluses for years. Recreating this type of bank in the other 49 states would create jobs, save money, and promote local economic development.