May 20, 2024
BILL NUMBER: S9326 (Brouk)/A10134 (Bronson)
TITLE OF BILL: “Bank of Rochester Act”
STATEMENT OF SUPPORT: New Economy Project fully endorses the Bank of Rochester Act, which aligns with the broadly-supported New York Public Banking Act (S1754/A3352). We have long advocated for the establishment of local public banks, and we now urge the legislature to bring public banking to New York by passing the landmark Bank of Rochester Act this session.
The bill would authorize the City of Rochester to create a municipal public bank. Public banks are created by governments to serve the public good. They hold public deposits and reinvest in local economic development, thereby fostering financial inclusion and community resilience. The bill is the strongest of its kind in the nation, and its enactment would make history; although hundreds of public banks exist around the world, the only one currently operating in the U.S. was established over a century ago in the state of North Dakota. Given myriad pressing economic challenges such as Rochester’s high child poverty rate and racial disparities in mortgage lending, the urgency for bold solutions like public banking cannot be overstated.
In Rochester, a public bank would dramatically alter the financial landscape by expanding access to affordable mortgages, financing affordable housing, supporting Black and immigrant-owned small businesses, and investing in renewable energy infrastructure. With community representation required in its governance, the public bank would ensure that its actions reflect the needs and interests of local residents, while the daily operations of the bank would be run by qualified, independent banking professionals charged with carrying out the bank’s mission.
Crucially, by providing liquidity and support to small banks and credit unions, the public bank would strengthen the local banking sector, fostering a more robust and secure financial ecosystem. The success of the century-old Bank of North Dakota, which has helped to foster the highest concentration of local banks and credit unions in the country, demonstrates the efficacy of this model. With broad support from local officials and a strong framework modeled after – and improving on – California’s 2019 public banking law, the Bank of Rochester Act is well-positioned to help build a just, transparent, and accountable financial system in New York.
For the above reasons, New Economy Project strongly supports this legislation.
Please contact Andy Morrison (andy@neweconomynyc.org) with any questions.