Kitchener Citizens Committee on Public Banking
If you would like to join the Kitchener Citizens Committee on Public Banking — KCCOPB kccopb.wordpress.com — in order to initiate the legislative process for establishing the Mackenzie King Public Bank of Kitchener, please contact us: KCCOPB@gmail.com
“Neoliberal economic theory assures us that what is good for the big privately-owned banks is good for society—that private ownership produces better results in that sector as in all others; but the data tell a different story. Usury banking dominates in Western countries today, but 40 percent of banks globally are publicly owned. The advantages of public over private banking are not rocket science. A government that owns its own bank can keep the interest and reinvest it locally, resulting in potential public savings of 35 to 40 percent. Costs can be reduced across the board; taxes can be cut or services increased; and market stability can be created for governments, borrowers, and consumers. Banking and credit become public utilities, sustaining the economy rather than mining it for private gain.” — Ellen Brown, The Public Bank Solution
Key Questions and Answers for
Elected Officials and Policy Makers
Treasury Staff, Bankers,
Taxpayers and Voters
The Seattle City Council is exploring the possibility of creating a public bank. It would be a controversial and somewhat revolutionary step, but Council member Nick Licata says a public bank would operate in the interest of the city’s government and its residents. Licata had several experts on public banks giving presentation to the council’s finance committee, which he chairs. He says a state-licensed public bank, in addition to holding money the city now deposits in private banks, might be able to lend money to small businesses, homeowners and others, who lack good private banking options. In addition, a public bank might serve as an alternative to private banks for financing local infrastructure and housing projects. “Public banks offer an opportunity to use public funds to benefit our local economy in ways that private banks don’t,” Licata said.
In 2011 Canadian Toronto Dominion Bank (also operating in the US) held $2.3 billion of the State of Vermont’s $10 billion total deposits. Despite that, TD made only $416,800 in loans to Vermont’s small businesses. In reaction to the outflow of Vermont depositor money, 19 of 23 Vermont communities, at town meetings, voted to urge the state Legislature to create a public Bank of Vermont, along the lines of the Bank of North Dakota. Toronto Dominion Bank and other major private banks mobilized to kill the public banking legislation. What they couldn’t stop was enactment of a law to dedicate 10% of the state treasury’s cash balance toward making loans and investments within the State of Vermont. As Vermonters discovered, despite their overwhelming support for creation of a public bank whose mission is to serve their interests, big private banking wields a potent influence when it comes to legislating at any level.
More on the public banking movement: ccc4mr.wordpress.com/ontario-public-bank/