“Banks that operate as public utilities can direct credit to where it best serves the needs of local economies. Such banks have no need to worry about maintaining their market shares, gambling with depositors’ money, or going bankrupt. With the full faith and credit of the government and the people behind them, with transparent best practices enforced by democratic checks and balances, and with a complimentary relationship to sustainable community banks, public banks can serve all of the people, not merely a few shareholders. Globally, public banks have been found to be safer and more productive to economies than private banks. They lend countercyclically, providing credit when and where other banks won’t. This does not crowd out private banks. Witness Germany and Taiwan, which have strong public banking sectors, yet they are among the most competitive banking markets in the world.”
