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Chapter 5 argues that the definancialisation functions of the Indian National Bank for Agriculture and Rural Development (NABARD) and the American Bank of North Dakota (BND) help these institutions persist as credible public banks in their class-divided societies. As with decarbonisation so too with definancialisation. Contradictions arise and struggles endure over who benefits from what public banks do. Public banks can shield workers, the poor and marginalised, micro-, small-, and medium-sized enterprises (MSMEs), the public sector, and spatial regions (rural/urban) from the discipline of financialised market imperatives. Public banks can similarly shield finance capital, the wealthy and privileged, large financial and non-financial corporations, and even the financial world market from these same financial imperatives, entrenching their unequal power over social reproduction.
Public banks are banks located within the public sphere of a state. They are pervasive, with more than 900 institutions worldwide, and powerful, with tens of trillions in assets. Public banks are neither essentially good nor bad. Rather, they are dynamic institutions, made and remade by contentious social forces. As the first single-authored book on public banks, this timely intervention examines how these institutions can confront the crisis of climate finance and catalyse a green and just transition. The author explores six case studies across the globe, demonstrating that public banks have acquired the representative structures, financial capacity, institutional knowledge, collaborative networks, and geographical reach to tackle decarbonisation, definancialisation, and democratisation. These institutions are not without contradictions, torn as they are between contending public and private interests in class-divided society. Ultimately, social forces and struggles shape how and if public banks serve the public good.
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