Res. No. 618
Resolution calling upon the New York State Legislature to pass, and the Governor to sign, A.11513 and companion legislation in the State Senate, the “Bank of New York City Act,” which would create a framework for cities with a population of one million or more to establish a municipal public bank
By Council Member Avilés
Whereas, New York State (State) and New York City (City) governments conduct billions of dollars in financial transactions each year through private financial institutions, paying banking, underwriting, interest, and other financing costs in connection with the deposit and management of public funds and the issuance of public debt; and
Whereas, A substantial majority of banking activity in New York City is concentrated among a small number of the nation’s largest commercial banks, giving those institutions a sizable role in determining how credit and financial resources flow throughout the City; and
Whereas, The City maintains billions of dollars in deposits, tax revenues, bond proceeds, and other public funds in commercial banks designated by the New York City Banking Commission, with a substantial share of those funds held by some of the nation’s largest banks; and
Whereas, The 2008 financial crisis and ensuing foreclosure crisis, fueled in significant part by predatory and reckless mortgage lending and securitization practices by large financial institutions, devastated communities across New York City, with Black and Latino homeowners and neighborhoods disproportionately harmed by foreclosures and the loss of household and community wealth; and
Whereas, Decades of research have documented discriminatory lending and persistent racial disparities in access to credit and banking services in New York City, including by large commercial banks entrusted with New York City municipal deposits, perpetuating patterns of disinvestment in Black and Latino communities and neighborhoods historically subjected to redlining; and
Whereas, The New York State Attorney General’s 2023 report "Racial Disparities in Homeownership" found that Black and Latino New Yorkers were more likely than white New Yorkers to be denied home mortgage loans even after controlling for factors like income and credit score; and
Whereas, During the COVID-19 pandemic, many small businesses and businesses owned by people of color faced significant barriers to obtaining federal Paycheck Protection Program (PPP) loans through large commercial banks, while community development financial institutions, credit unions, and other community-based lenders played a critical role in reaching businesses and communities underserved by the conventional banking system; and
Whereas, Community development credit unions, community development financial institutions, community banks, and other mission-driven financial institutions have demonstrated their ability to reach borrowers and communities underserved by large commercial banks, but often lack access to the capital and liquidity necessary to meet the scale of New York City’s affordable housing, small business, and community development needs, as well as broader needs for accessible credit, banking, and financial services; and
Whereas, A municipal public bank could strengthen these institutions by partnering with them, participating in and purchasing loans, providing liquidity and other forms of financing, and expanding the amount of capital available for community investment; and
Whereas, Recent research on public banking in New York City has found that a public financial institution, working in partnership with community-based lenders, could substantially expand financing for affordable and community-controlled housing, small businesses and worker cooperatives, renewable energy and climate infrastructure, and other community development priorities; and
Whereas, In addition to expanding community lending through such partnerships, a municipal public bank could perform a range of public financial functions, including holding and managing public deposits, providing credit and liquidity to government, supporting the financing of public infrastructure and other public investments, providing municipal financial services to the City, and, enabling the City to reduce certain financing costs and retain and reinvest more of the economic value generated by its financial activity for public purposes; and
Whereas, A 2023 report co-authored by former New York City Chief Economist James Parrott found a New York City public bank would, over just its first five years, produce significant economic impacts in low-income communities and communities of color, including: 1) 70,600 jobs, 2) 17,855 units of affordable housing, and 3) $5.8 billion in new lending for small businesses, climate infrastructure, and affordable consumer loans; and
Whereas, The State and City government have a fiduciary responsibility to ensure that public funds are used in the most efficient manner possible; and
Whereas, New York State Assembly Member Amanda Septimo has introduced A.11513, now pending in the New York State Assembly, which would enact the “Bank of New York City Act” amending the Banking Law, the State Finance Law, and the General Municipal Law to create a legal and regulatory framework for cities with a population of one million or more to establish, by local law or resolution, a municipal bank chartered by the Superintendent of the Department of Financial Services; and
Whereas, The bill would require any such municipal public bank to be governed by a nine-member board of directors and a fifteen-member advisory board and would prohibit the bank from engaging in retail banking or accepting deposits from the general public, thereby ensuring it would partner with and complement, rather than compete with, local financial institutions such as credit unions, community development financial institutions, and community banks; and
Whereas, A. 11513 would require any municipal bank to prioritize lending that supports small businesses and worker cooperatives, community land trusts, low-income and affordable housing, and renewable energy, as well as focus on underserved and underbanked persons, MWBEs, and economically distressed communities, while remaining subject to annual reporting and independent audits overseen by the Superintendent and State Comptroller; and
Whereas, By leveraging public capital and partnering with community-based financial institutions, a municipal public bank would enable the City to increase investment in affordable and community-controlled housing, small businesses and worker cooperatives, renewable energy and climate infrastructure, and equitable community development while keeping more of the economic benefits generated by public resources working for New Yorkers; expand access to affordable credit, banking, and financial services; address longstanding racial and economic disparities in access to capital; and keep more of the economic benefits generated by public financial activity working for New Yorkers; now, therefore, be it
Resolved, That the Council of the City of New York calls upon the New York State Legislature to pass, and the Governor to sign, A.11513 and companion legislation in the State Senate, the “Bank of New York City Act”, which would create a framework for cities with a population of one million or more to establish a municipal public bank.
LS #25318
7/22/2026
BS