1 - The World of Public Banks

Summary

Chapter 1 argues that total global public banking capacity is exponentially greater than what tends to be reported by international institutions. Two premises support the argument. First, the financing for development literature provides an inconsistent and inaccurate empirical account of public banks around the world. The forcefulness of this premise depends on the second premise, namely that national and subnational public banks persist in significant institutional numbers and size. The chapter shows there are more than 900 public banks with nearly $49 trillion in combined assets. Understanding the actual capacity of (sub)national public banks is a precondition for having an informed debate on the future of public banks and for whom they might catalyse a global green & just transition. The chapter opens this discussion by first locating public banks within the wider credit system and in relation to other types of public financial institutions.