Maybe Cities Can Have a Local Bank!

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By BStigers on March 13, 2019.

Two California Assemblymen have introduced AB 857 designed to enable local governments to charter their own public banks. They argue that banking at the closest level to the residents would put investments, loans, and money management in the local neighborhoods where people live. Middle- and low-income residents would benefit the most, according to the congressmen, Miguel Santiago D-Los Angeles and David Chiu, D-SFO. The bill is co-sponsored by the California Public Banking Alliance, as well as several other public banking advocate groups. It’s not the first time that California leaders have proposed bills that would create public banks. Former Treasurer John Chiang last year commissioned a study on whether the state should develop a public financial institution for the cannabis industry. The Cannabis industry has been wrestling with cash and no place to bank it ever since it became a legal industry in California on January 1st, 2018. California’s Tax officials are also working to solve the collection of taxes from sales of Cannabis products which are now paid in cash at state manned locations throughout the state. The proposal would not create a state-wide bank but local governments like cities and counties could charter and have their own local banking institutions.