By Christin Evans, HANC Board
In the United States, private for-profit banks have evolved the products they offer and the customers they serve to maximize profits leaving significant gaps in products and services for San Francisco’s low income workers, affordable housing projects, and small businesses. While the Bay Area has a relatively large number of community banks and credit unions, these institutions lack the scale and reach to adequately meet the needs of this vastly underserved market.
The San Francisco Reinvestment Working Group convened by LAFCO (Local Agency Formation Commission) earlier this year has been writing the business plan for a public bank to seek to create the foundation for a municipal bank which has a primary goal of serving its community over the interest of profits. The Working Group, given a mandate by a unanimous vote of the Board of Supervisors last year, has been developing a plan to use city assets currently stored in private market banks to capitalize a municipal benefit corporation or private bank within the next few years.