How Does a Public Bank Manage the People’s Money?
The interest the City pays on its borrowing could stay here in Santa Fe– reversing the stream of interest payments now flowing outside the City and state.
A public bank has the potential to pay higher interest to the City for its deposits because the public bank does not pay dividends or earnings to stockholders.
It can provide a new source of credit the City needs so it doesn’t have to borrow or bond outside New Mexico as it does now.
A Public Bank for Santa Fe can protect our community funds from losses associated with being deposited in global banks that employ risky investment practices.
A Public Bank for Santa Fe can expand access to local credit by employing the credit creation practices that are available only to chartered banks, permitting them to issue credit, i.e. loans, up to 90% of what they hold on deposit.