A Public Bank for San Francisco

On February 3rd, 2026, Supervisor Jackie Fielder introduced a proposition for the November 2026 ballot that would tax the largest San Francisco corporations, including credit card companies, to fund a public bank. 

FAQ

What is a public bank?

In simple terms, a public bank is a bank owned by the government. Traditional Wall Street banks maximize profits to serve shareholders. By contrast, public banks are owned by the public and therefore serve the people. There are 1,115 public banks and financial institutions around the world with combined assets exceeding $91 trillion.

In political economic terms, a public bank is a financial institution that is “located within the public sphere by virtue of controlling public ownership by a government, public authority, or other public enterprise, or according to a legally binding public interest mandate, or through meaningful public governance and control, or by some combination of these factors” (Marois, 2021).

By California law AB 857 (2019), a public bank is defined as “a corporation, organized under the Nonprofit Mutual Benefit Corporation Law…or the Nonprofit Public Benefit Corporation Law…for the purpose of engaging in the commercial banking business or industrial banking business, that is wholly owned by a local agency, local agencies, or a joint powers authority…”

How will the public bank be funded?

The proposition that Supervisor Fielder put forward for the November 2026 ballot taxes the wealthiest corporations, including credit card companies, to provide $400 million over the span of 9 years into a Public Bank Fund. Funds after 9 years will go towards the city’s general fund.

Would individuals be able to open bank accounts at a future public bank?

Short answer: no. 

Under state law, a municipal public bank could engage in local agency banking (i.e. serving as the City’s bank), infrastructure lending (e.g. roads, bridges, energy systems), wholesale lending (loans to other financial institutions), and participation lending (loans with other financial institutions). 

Public commercial banks around the world do provide retail banking services to individuals, but a public bank owned by the City and County of San Francisco would not be able to without partnering with a local financial institution. Under state law AB 857, a public bank “shall conduct retail activities in partnership with local financial institutions and shall not compete with local financial institutions.” A public bank does not have to partner with local financial institutions in retail activities if and only if “those retail activities are not offered or provided by local financial institutions in the jurisdiction of the local agency or agencies that own the public bank.”

What will a public bank do for San Francisco?

Crucially, a public bank will help San Francisco meet public policy goals, such as keeping our small business ecosystem intact, build 46,000 affordable homes by 2031, and reach net zero emissions by 2040. A public bank in San Francisco will, through wholesale and participation lending, provide no-to-low cost loans for small businesses, affordable housing, green projects (e.g. electrification of buildings and homes), worker cooperatives and more.  During COVID and in the wake of the 2008-09 financial crisis, public banks helped stabilize economies by providing affordable and long-term loans, and a public bank in San Francisco will do the same, especially as we reckon with the AI bubble. A 2024 survey by Goldman Sachs found that on average 28% of small businesses nationally report experiencing predatory loan payment terms, and that increases to 37% for Black small business owners. The average California business using predatory loans is charged 178% of its net income, with Black- and Latine-owned businesses being disproportionately targeted with expensive lending products. A public bank is crucial to remedying these social disparities in San Francisco. All of this and more is possible because the bank will be policy-driven rather than profit-driven.

Do other public banks exist in the United States?

Yes! The only other public bank in the continental United States is the Bank of North Dakota, which is owned and backed by the State of North Dakota. It has been around since 1919, helping North Dakota survive the Great Depression, the 2008-09 financial crisis, and the COVID pandemic. It has returned hundreds of millions of dollars to the general fund, maintained access to credit during economic downturns, and and helped maintain a healthy ecosystem of credit unions and community based banks, largely locking out Wall Street banks from the state. Read more: How One State Escaped Wall Street’s Rule and Created a Banking System That’s 83% Locally Owned.