If you’ve read the CNP platform, you’ll notice it calls for the creation of a public credit union. This is a fantastic idea that reminds me of the success of the nation’s only public bank in North Dakota.
The BND receives all state taxes and thus has a “captive deposit base.” They reinvest that money directly back into the state’s economic development. This takes the form of investing in areas the big banks are ignoring and using the state’s money to buy down interest rates for small business loans.
Other advantages include developing loan programs for natural disaster relief and the regular large dividends it pays back to the state that can fend off budget shortfalls during recessions. Over 10 years, the BND returned a dividend of a third of a billion dollars for a population of 600,000. Adjusted for California’s size, that would equal around $2.2 billion per year.
Though our public credit union will probably take a different shape than the BND (they take almost no individual deposits), it still serves as a great example of how a publicly-owned financial institution can be a huge boon to the California Republic’s economic growth and stability.