Evidence Brief: The World of Public Banks

The world of public banks is experiencing a renaissance. Public banks helped to stabilize economies in the wake of the 2008-09 global financial crisis. Public banks provided affordable and long-term loans to help mitigate the impacts of the Covid-19 pandemic.5 Public banks are also leading green transition efforts in response to the global climate crisis. Yet civil society, policymakers, and researchers must be vigilant about what public banks do and why. Public banks can respond to crises and social disparities by being policy – rather than profit-driven, but only if commanded to do so by society. Democratic governance and accountability are key to making these powerful public institutions pro-public.

Key takeaways

• Public banks can tackle global grand challenges as a matter of policy, not profit.
• There are 1115 public banks and financial institutions worldwide with combined assets exceeding $91 trillion.
• The world of public banks is institutionally diverse.
• There are no guarantees that public banks will serve public purposes. Democratic governance is key.