Governor Signs Executive Order Establishing Public Bank Implementation Board

Governor Phil Murphy Wednesday signed Executive Order 91 creating a Public Bank Implementation Board. The board is tasked with developing an implementation plan for a public bank.

Murphy signed the executive order in a public ceremony at the Newark offices of NJ Citizen Action, the leading advocate for a public bank. 

The 14-member board will be chaired by NJ Department of Banking & Insurance Commissioner Marlene Caride with nine other members coming government and four from the public. There is no industry representation on the board.

The full list of those named to board's membership follows:

  • Marlene Caride, Commissioner, Department of Banking and Insurance (Chair)
  • Liz Muoio, NJ State Treasurer
  • Matt Platkin, Chief Counsel to the Governor
  • Kathleen Frangione, Chief Policy Advisor to the Governor
  • Derrick Green, Senior Advisor to the Governor for Diversity and Urban Affairs
  • Deb Cornavaca, Deputy Chief of Staff to the Governor for Outreach
  • Joe Kelley, Deputy Chief of Staff to the Governor for Economic Growth
  • Kevin Quinn, Chair of the EDA Board
  • Christy Van Horn, Chair of the HESAA Board
  • Lieutenant Governor Oliver, Chair of the HMFA Board
  • Phyllis Salowe-Kaye, Executive Director, New Jersey Citizen Action (public member)
  • Joan Bartl, Co-Director, Banking on New Jersey (public member)
  • Dr. William M. Rodgers III, Professor of Public Policy at Rutgers University (public member)
  • Sean Spiller, Vice President, New Jersey Education Association (public member)

The board must hold its first meeting within thirty-days and submit its report to the governor within one-year. It must hold at least three public meetings.

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.