New Mexico’s Alliance for Local Economic Prosperity announced that the Credit Union Association of New Mexico, a statewide trade organization that advocates for credit unions, has formally endorsed a public bank for NM. This is a key endorsement and bolsters the group’s growing alliance to advance upcoming legislation that will be introduced in 2021.
Credit Unions across the US support Public Banks
As states across the US pursue and pass public bank bills, Credit Unions are recognizing the added value public banks bring not only to regional economic stability but also to their own ability to make loans and increase their business. It is common for community banks and credit unions to partner with larger financial institutions to provide business loans and other products, and public banks provide yet another source of liquidity and financial partnership, and at lower interest rates.
- In California, several credit unions supported passage of Assembly Bill 857 in late 2019* enabling the creation of municipal banks in that state.
- In New Mexico, the Credit Union Association of New Mexico formally endorsed a public bank for NM in July, 2020.
- In New York, Melissa Marquez, CEO of Genesee Co-op Federal Credit Union, lauded the benefits of public banks on WXXI in August of 2020.
Bankers Roundtable discussion on the benefits of public banks
Walt McRee of the Public Bank Institute moderated a discussion of bankers in North Dakota, home of the oldest public bank in the nation, about the benefits the state’s public bank has brought to their whole banking ecosystem.
North Dakota Bankers Roundtable with Walt McRee
Recent articles on credit union support for public banks
Could or should Rochester have a publicly-owned bank? As reported by Gino Fanelli for CITY Newspaper, “the idea would have the city take the millions of dollars in tax revenue it currently deposits in big commercial banks and park the money in a city-owned and -operated financial institution that would invest in the local economy by providing inexpensive and accessible financing to city businesses, developers, and would-be homeowners.”
* In California, legislators clarified the partnership arrangement with local financial institutions through a provision in the law stating that public banks would cooperate with local financial institutions and engage in retail activities only in partnership with local institutions, except for retail activities that are “not offered or provided by local financial institutions.”