Florida Banking November 2021

compete with FDIC banks. Other states such as California have passed laws for a public bank, but so far none have been chartered. Finally, there is the FedAccounts proposal to allow the Federal Reserve to offer transaction accounts directly to U.S. citizens and businesses. They argue that

a significant role in the minority, low- and moderate income, and rural communities they serve. Investments by the fund will enable them to have a greater impact in their communities by providing affordable financial products and services, stimulating economic and community development, and building opportunity and prosperity.” Many banks have donated to this Fund to help it succeed. These programs are examples of the type that should reduce the number of the unbanked. On the other hand, there are ideas by progressives that probably will not help the problem and will only lead to an increase in the size of government. Some believe that the U.S. Postal Service beginning a bank will help both the unbanked and the Post Office. It is highly unlikely that having the USPS open and service accounts will succeed. Another idea is a public bank. Advocates believe that it will help the unbanked since it will be consumer oriented and not profit-oriented. Only one state has a public bank, North Dakota, and it is a vestige of the WWI era. The Bank of North Dakota does not

this will be more consumer-oriented and could speed up the delivery of government benefits. This proposal will use the banking system as a mere conduit for service. All of these proposals fail to understand that market-oriented systems will, on the whole, outperform government entities or that bottom-up emergent order markets will outperform top down markets. As much as many would want, there is no magic wand to change basic economics.

“ BANKS MAKE DREAMS COME TRUE, AND WE

WILL CONTINUE TO CREATE MORE DREAMS FOR MORE PEOPLE. ”

With this in mind, the bottom-up market (with or without partnership with the public sector) needs to continue to reduce the number of the unbanked. Our industry will continue to make significant strides on reducing this number. Banks make dreams come true, and we will continue to create more dreams for more people.

At FNBB, we understand your needs and celebrate your achievements. We’re always available to discuss day-to-day challenges, plans for the future, or anything in between. Our industry is forever evolving, but together we can tackle new challenges and take advantage of new opportunities.

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It is our privilege to serve you. Thank you for allowing us to be your trusted partner.

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