Evidence Brief: Public Banks 101
An Introduction
Public banks of one type or another exist practically everywhere on earth. There too is nothing new about public banks. However, since the 2008-09 global financial crisis public banks have experienced a renaissance. This is because public banks can respond to crises – like the financial, Covid-19, and climate crises – as a matter of policy rather than profit.
Public banks can work together to play an economically catalytic and socially inclusive role by fostering an intentional global public bank financial ecosystem. Cooperation enables longer-term horizons and helps to overcome the economic barriers posed by competitive, short-term, and profit-maximizing strategies to green transitions. Public-public collaboration among the world’s public banks has the unique potential to deliver green and just financing at the pace, scale, and on the terms required.
Key takeaways
- A public bank is a financial institution located within the public sphere.
- There are over 1100 public banks and financial institutions with $91 trillion in assets.
- Commercial, universal, and development banks are common types of public banks.
- Public banks are neither inherently good nor bad.
- Public banks can foster a global public financial ecosystem for green and just transitions.