Approximately 20 percent of banks around the world are public, meaning they are controlled by a government body instead of private investors. Unlike most banks in the U.S., public banks are managed to support local lending within their jurisdiction and invest within the community to maximize local public good. Instead of being driven by short-term profits to shareholders, decisions regarding public banks are generally in the interest of the public. Profits generated by public banks, which comes mostly from the interest paid on loans, are utilized to lower interest rates and make banking accessible to a broad spectrum of customers in the community across various income levels and social standings. In Germany, public banks have been largely responsible for the tremendous growth of local, clean energy resources.
On September 25, 2017, the Local Clean Energy Alliance teamed up with the Friends of the Public Bank of Oakland to host Wolfram Morales, Chief Economist at the East-German Savings Bank Association, Sparkasse, for a community forum at Oakland’s City Hall. The presentation detailed the connection between the benefits of a transparent, local banking system and the ability to procure democratically-controlled clean energy.