- By James Salazar | Examiner staff writer
- May 19, 2023 Updated 4 hrs ago (SFExaminer.com)
San Francisco could soon launch its own bank.
The San Francisco Reinvestment Working Group (RWG), an advisory committee tasked with exploring the creation of a municipality-owned bank, voted to advance the plan during a specialty meeting on Thursday.
The RWG proposal would set up a publicly owned municipal financial corporation (MFC) that will invest in key city needs, such as affordable housing, small businesses, and green infrastructure.
Supervisor Dean Preston said the plan sets the stage for the creation of “the first municipal public bank in the nation.”
“As we continue to chart a path to economic recovery and a sustainable economy, the Working Group’s business and governance plans provide the road map for our city to create the first municipal public bank in the nation, a crucial strategy to ensure that our city funds are used to reverse inequities, not perpetuate them,” he said in a statement.
“The final plans submitted by the RWG is a huge step forward in turning the public bank concept into a reality.”
The MFC will eventually be converted into a public bank regulated by the Federal Deposit Insurance Corporation and California Department of Financial Protection and Innovation.
Proponents see the bank aiding San Francisco’s post-pandemic recovery as bank profits would be directed to The City.
“The reinvestment working group has done excellent work,” Jackie Fielder, co-founder of the San Francisco Public Bank Coalition, said in a statement.
“They’ve delved into the existing gaps for small businesses, affordable housing, and green energy, especially post-pandemic. Our city urgently needs a public bank for economic recovery, and the plan provides officials with a no-brainer blueprint.”
The RWG’s plans and studies will be presented to the Board of Supervisors in July.
James Salazar
News Producer
James Salazar is a social media producer and a digital news producer for the San Francisco Examiner.
