Public Banking: A Public Option to Build an Inclusive and Sustainable Economy

Overview

This report explores public banking as a critical tool for advancing a rights-based economy grounded in racial justice, Indigenous sovereignty, and environmental sustainability. The authors argue that public banks, when governed by democratic principles and equity-centered mandates, can challenge the extractive logic of private finance and help meet collective needs. Drawing on national and global case studies, the report presents public banking as necessary infrastructure for equitable economic development.

Key Findings

• Private banks in the United States are structurally obligated to prioritize shareholder returns, which perpetuates wealth extraction from marginalized communities, reinforces racial inequities, and supports harmful industries like fossil fuels and the carceral system. In contrast, public banks across the globe manage trillions in assets and are increasingly used to address public needs and support economic resilience. Despite the existence of successful public banking models such as the Bank of North Dakota and tribally chartered banks, the U.S. has yet to fully invest in this potential at scale or with clear mandates for racial and climate justice.

• The report details how public banks can be structured with mandates that explicitly promote human rights, protect against surveillance-based harms, and ensure investments serve historically marginalized populations. It emphasizes the importance of aligning with international standards, such as the United Nations Declaration on the Rights of Indigenous Peoples, and calls for the practice of Free, Prior, and Informed Consent in all relevant projects.

• Case studies, including those in Los Angeles and Seattle, illustrate how public banking campaigns are increasingly integrating equity-focused principles, divestment from harmful sectors, and reinvestment in community well-being.

Policy Implications

Public banking, if established with strong democratic oversight and clear equity goals, can serve as transformative infrastructure to build a just economy. Policymakers and advocates are encouraged to move beyond incremental reforms and consider public banking as a foundational component of a sustainable and inclusive financial system that prioritizes people and the planet over profit. The report serves as both a critique of existing financial systems and a guide for creating alternatives that are truly accountable to the communities they serve.