Philadelphia Public Bank Feasibility Study
City of Philadelphia
HR&A evaluated whether Philadelphia could establish a public bank to achieve a more just economy in the face of entrenched racial poverty and an $800 million small business lending gap. Our feasibility study for the Philadelphia Public Bank Working Group provided the roadmap for legislation that would make Philadelphia the first US city with a municipal bank prioritizing equity and community wealth-building.
Philadelphia faced severe financial exclusion with over 35 percent of residents unbanked or underbanked—the highest rate among major US cities—and an $800 million small business lending gap disproportionately affecting Black and Latinx entrepreneurs. HR&A’s feasibility study for the Philadelphia Public Bank Working Group evaluated whether a municipal bank could address these inequities while maintaining City autonomy over financial resources.
The Philadelphia Public Bank Working Group prioritized supporting underserved small businesses to create jobs and build community wealth through a bank that would make different risk determinations, account for biases in credit calculations, and value community well-being beyond profits. HR&A analyzed local context, evaluated financial, legal, and administrative feasibility, measured potential impact, and developed an implementation roadmap. Our study concluded that creating a public bank was achievable if the City and Commonwealth undertook necessary legal actions and structured the bank to maximize lending impact.
The City released the feasibility study in September 2020, and City Councilmember Derek Green introduced legislation to create the Philadelphia Public Financial Authority, a critical first step.
