Depositing Public Funds in Local Banks

In May 2011, Massachusetts Treasurer Steven Grossman launched the Small Business Banking Partnership, a program that will move at least $100 million of the state's cash reserves from large national banks to local community banks with the understanding that these institutions will use the deposits to increase lending to small businesses. More

On November 18, 2010, the Multnomah County Board of Commissioners approved a measure that creates a Community Advantage Banking Program, under which the county will invest $10 million of its funds with qualifying local community banks and local credit unions.  The investment is expected to expand local lending, particularly to small businesses. More

This bill would give local banks and credit unions a 10 percent pricing preference on bids to manage both state and municipal bank accounts. More

This bill gives local banks and credit unions a 10 percent pricing preference when bidding to manage the state's bank accounts.  Currently, the state maintains 264 major accounts, including its general fund account and accounts for various agencies. The total amount of money on deposit in these accounts varies considerably over time, but can be as high as $100 million. Every five years, the state bids out these accounts as a package, awarding their management to a single bank. U.S. Bancorp, the nation's 11th largest bank holding company, won the most recent bid. More

The bill would give New Mexico-based banks and credit unions that otherwise meet the state's banking requirements a 10 percent preference in bidding to be the state's fiscal agent, the institution that manages its day-to-day banking business.  The bill also requires the New Mexico Treasurer and the State Investment Council to develop an investment policy for funds held in CDs (certificates of deposit) that would increase community bank lending to local residents and businesses. More