There was once a time in the US when public banks were the norm; but now the financial landscape is dominated by large retail and commercial for-profit banks. On today’s show, guest host Zoe Sullivan is in conversation with Don Morgan and Oscar Perry Abello about the benefits of public banking for local communities and small and medium-sized businesses, especially when it comes to supporting communities that have historically been discriminated against and that may not have much collateral or credit history.

Morgan describes the services that the Bank of North Dakota provides, including novel ways of responding to natural disasters and other crises. For instance, they have a Farm Financial Stability Program for row-crop farmers who have been struggling due to extreme flooding, high input costs, and low commodity prices.

Abello discusses how public banks support housing initiatives. He says that so much of construction lending is done by local and regional banks who are the institutions that people turn to when they want to build affordable housing or build on vacant lots. However, access to community banks is limited. Abello says there are 4,000 community banks out there, but only 3% of those banks are run by Black, Latinx, or Native American owners.

They also talk about how public banks would respond to a national banking crisis, crypto currency, address community needs quickly and nimbly, how they’re different from postal banking. Morgan says that “behind strong communities are strong community banks.” And Abello adds that “banking is too important to leave to the bankers.”

Don Morgan is the CEO of the Bank of North Dakota.

Oscar Perry Abello is a journalist covering alternative economic models and policies across the United States and the author of The Banks We Deserve. He is currently the senior economic justice correspondent for Next City, an independent, not-for-profit, online publication covering cities from the lens of social, racial, and environmental justice.

Featured image of a piggy bank.

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