Philadelphia Is Launching the First Public Bank Owned by a City

This week on Upzoned, host Abby Kinney wades into a proposal for a new Philadelphia-based public bank, a financial institution being created to provide new loans with reduced cost of capital in marginalized neighborhoods. Along with co-host Charles Marohn, president and founder of Strong Towns, Abby examines the concept of public banks as presented in a podcast by the progressive non-profit media outlet, Next City. 

Next City Executive Director Lucas Grindley and Senior Economics Correspondent Oscar Perry Abello ask whether the first public bank owned by a city can be a “systemic gamechanger for the racial wealth gap,” according to the group’s summary of the podcast. Derek Green, a Philadelphia city council member championing the city’s public bank, joins the Next City hosts to explain that loans to small businesses can be a source of jobs in economically stagnant “bank deserts.” 

This could be a creative option if you're looking for creative financing solutions in your place and find that local Community Development Financial Insitutions (CDFIs) are too strapped to make loans. Nevertheless, it might make sense for public bank shareholders—aka local taxpayers—to be watchful.

Additional Show Notes

• “The First City To Launch Its Own Bank,” hosted by Lucas Grindley and Oscar Perry Abello, Next City (May 2022).

• Abby Kinney (Twitter)

• Charles Marohn (Twitter)

• Theme Music by Kemet the Phantom.