A bill that would allow for the creation of public banks in the United States was introduced in the House of Representatives last week. Congresswomen Rashida Tlaib (D-Michigan) and Alexandria Ocasio-Cortez (D-New York) introduced the Public Banking Act, which allows for the creation of state and locally administered public banks by establishing the Public Bank Grant program administered by the Secretary of the Treasury and the Federal Reserve Board which would provide grants for the formation, chartering and capitalization of public banks.
Public banks can offer lower debt costs to city and state governments, fund public infrastructure projects, and encourage entrepreneurship by providing loans to small businesses at lower interest rates and with lower fees.
The legislation also creates a pathway for state-chartered banks to gain federal recognition and recognizes a framework for public banks to interact with Fed accounts, postal banking, and digital dollar platforms.
— source corporatecrimereporter.com | Oct 31, 2020