According to the Public Banking Institute website (link below), public banking is
A viable solution to the present economic crises in the United States.
Counter-cyclical, meaning they are capable of reducing the negative impact of recessions. The reason: they can make money available for local governments and businesses precisely when private banks decrease lending.
Potentially available to any-sized government or community able to meet the requirements for setting up a bank.- Advertisement -
Owned by the people of a state or community.
Economically sustainable, because they operate transparently according to applicable banking regulations
Able to offset pressures for tax increases with returned credit income to the community.
Ready sources of affordable credit for local governments, eliminating the need for large "rainy day" funds.
Required to promote the public interest, as defined in their charters.
Constitutional, as ruled by the U.S. Supreme Court
Meanwhile, the Institute states that public banks
Are not operated by politicians;
Are run by professional bankers.
Don't provide big dollars for bank executives; rather, their employees are salaried public servants (paid by the state, with a transparent pay structure) who would likely not earn bonuses, commissions or fees for generating loans.