Public Bank Announcement on Governor’s Schedule Today

Governor Phil Murphy has scheduled an announcement today concerning development of a public-owned bank in New Jersey. Scheduled for 11:00am at the Newark offices of NJ Citizen Action, the announcement will be livestreamed on the governor's official YouTube channel.

 Murphy is expected to sign an executive order to create a 14-member “implementation board” to make good on his campaign promise to establish a public bank in the Garden State.

The board will be led by NJ Department of Banking & Insurance Commissioner Marlene Caride with other members coming from both the administration and the public. Additional details are expected to be made public during today’s announcement.

Advocates of public banks say they can provide borrowers with fairer interest rates and fees, and other favorable terms because there’s no need to maximize shareholder profits. But others raise concerns that a public bank would take business away from the state’s community banks and not-for-profit, member-owned credit unions, as well as create new opportunities for corruption and undue political influence.

 The Bank of North Dakota is currently the only government-owned general-service bank in the nation though California enacted legislation last month, the Public Banking Act (AB 857), to allow up to ten counties and municipalities in the state to establish banking institutions.