Proposition B would not actually create a public bank. It would let San Francisco establish a “nonprofit lending institution” called a municipal finance corporation.
After three years, the corporation could seek regulatory approval to become a public bank.
Supervisor Chyanne Chen promoted Prop B at a June Board of Supervisors meeting.
"A public bank would open the doors to build an engine for affordable housing," said Chen, "a lifeline for struggling small business. "
But Supervisor Alan Wong opposed the idea over questions he felt were unresolved.
"A commitment of that scale calls for a clear picture of how it would be funded, how it would operate, and how it would be held accountable," Wong said.
According to the city controller getting a public bank up and running could cost up to $500 million over eight years.