F R E S N O P U B L I C B A N K I N G
B a n k i n g f o r P e o p l e a n d P l a n e t | P r e s e n t a t i o n f o r F r e s n o C i t y C o u n c i l - S e p t e m b e r 2 5 , 2 0 2 5 The Case for Change
Investing Against Our
Values
Fresno’s public funds sit in big banks
that often finance industries causing
economic harm.
Big Banks Drain Public
Resources
Cities send millions yearly to
commercial banks in fees and
interest, money that could be used
for housing, infrastructure, and public
services.
A Financial System That
Excludes
Too many low-income and
communities of color lack access to
affordable credit and investment,
deepening inequality.
Limited Control, High Costs
Big banks put profit first, costing the
city more and limiting its ability to
invest in what Fresno communities
need.
What's a Public Bank? The Solution.
A F i n a n c i a l I n s t i t u t i o n
O w n e d b y t h e P e o p l e
A p u b l i c b a n k i s a n o n - p r o f i t i n s t i t u t i o n o w n e d b y l o c a l g o v e r n m e n t s , a n d e x i s t s t o s e r v e t h e p u b l i c , n o t p r i v a t e s h a r e h o l d e r s l i k e s c h o o l s a n d f i r e d e p a r t m e n t s .
P u b l i c b a n k s a r e w h o l e s a l e b a n k s , n o t r e t a i l f a c i n g . N o b r i c k a n d m o r t a r , A T M s C o m m u n i t y P a r t n e r s h i p
w i t h F r e s n o ’ s L o c a l L e n d e r s
P u b l i c b a n k s t e a m u p w i t h l o c a l l e n d e r s : c o m m u n i t y b a n k s , c r e d i t u n i o n s , a n d C D F I s t o b r i n g c a p i t a l t o c i t i e s l i k e F r e s n o w h e r e p o v e r t y r a t e s a r e h i g h .
Public banks are designed to put community needs first, reinvesting public dollars into public good, not private profit.
W h a t P u b l i c B a n k s D o
D e p o s i t s – F r o m c i t i e s a n d p u b l i c a g e n c i e s ( n o t i n d i v i d u a l s )
L e n d i n g – D i r e c t l o a n s , e x p a n d l o c a l l e n d i n g
I n v e s t m e n t – F u n d h o u s i n g , g r e e n p r o j e c t s , s m a l l b u s i n e s s
E a r n i n g s a r e r e i n v e s t e d i n t o c o m m u n i t y p r o j e c t s a n d r e t u r n i n g p r o f i t s t o t h e c i t y .
Public Banking Works
The Bank of North Dakota (BND), America’s
100-year-old public bank, supports small
businesses, weathers financial crises.
BND has an 18% return on investment,
returns hundreds of millions in profit to
the general fund annually.
Provides loans for homes, students,
agriculture, and infrastructure.
Partners with community banks for over
half its loans.
Global Context
40%+ of banks worldwide are publicly
owned ($55T in assets).
Built for Public Benefit
Unlocks Public Financing
Power—$1 Becomes $10
A public bank leverages city funds
with a 10x multiplier. $1M can
generate up to $10M in community
lending.
Fiscally Responsible
Recycling public dollars helps cities
meet urgent needs without raising
taxes, cutting borrowing costs by nearly
50% and doubling investment power.
Tax-exempt and low-cost, public banks
stretch public dollars further.
Independent Governance &
Separate Legal Entity
A public bank is set up as a separate
nonprofit legal entity. Its debts and
obligations belong to the bank itself,
not the city.
Mobilizing public revenue to serve the public good.
Turn CityRevenue intoCommunityInvestment
City Hall puts public funds into a public
bank, which lends them for local needs
like housing.
Cities can use existing funds to start a
public bank, which begins small and
grows by reinvesting its earnings.
As loans are repaid, the money is
recycled, keeping public dollars
working for the community.
Funding and Governance
Managing Risk & Safeguards
Feasibility study will define risks and safeguards
before moving forward.
Capitalizing the Public Bank
Cities can use existing funds to start a public bank,
which begins small and grows by reinvesting its
earnings.
Strong Oversight
A public bank is overseen by an independent
board and regulated to ensure transparency,
safety, and stability.
Builds Public Financial Infrastructure
With federal funding uncertain, it gives cities a
reliable, long-term way to fund local needs
grounded in public control, not politics.
Benefits of a Public Bank for Fresno
Financing for Affordable
Housing
The public bank provides low-
interest loans and helps
simplify a process that often
requires 12 or more funding
sources, making it easier and
faster to build affordable
housing.
Investing in a
Sustainable Economy
The bank can fund energy,
electrification, and
infrastructure projects
without relying on private
lenders.
Expanding Access for
Small Businesses
By working with local
lenders, a public bank can
reach small businesses that
big banks ignore.
A public bank helps Fresno cut costs, move money faster, and fund housing, infrastructure, and small businesses.
Disaster Response
A public bank gives Fresno the power to quickly fund disaster relief and climate-ready infrastructure, when federal help fall short.
California Public Banking Act
California passed the nation’s first law letting
cities create public banks in 2019. State
regulations were finalized in 2022.
California public banks will be created for the purposes of: (1) cost savings, (2) strengthening local economies, (3) supporting community economic development, (4)
addressing infrastructure and housing needs for localities.
Regulatory Approval. To open a public bank, cities must apply for a license from state and federal regulators:
DFPI and FDIC.
Feasibility Study. Roadmap outlining costs, needs, ROI, lending, and financial models to show how a public
bank could be economically viable and beneficial for
Fresno.
Fresno Community Support
The Academy of Financial Education
Central Valley Urban Institute
Central Valley Immigrant Integration
Collaborative (CVIIC)
Education & Leadership Foundation (ELF)
Q&A
California Public Banking Alliance | capublicbanking.org