A state public bank is a financial institution chartered by the state government and mandated to serve a public mission that reflects the values and needs of society. It is owned by the state, professionally run by bankers and guided by three principles:
Working in the interest of the public, not private shareholders
Maximizing sustainable lending, not profits
Keeping capital local to benefit the state government and its citizens
Rather than investing in foreign or speculative markets, as is the case with giant banks and equity funds, a public bank keeps capital in the State and invests in local communities with the goal of long-term economic health of the state and its people. It does this by partnering — not competing — with local banks in making low cost credit easily available to start new businesses and expand existing ones. Furthermore, a public bank funds local public works and infrastructure projects, affordable housing, local agriculture, student loans and much more. All profits and interest payments are returned to the people!