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Should LA have its own public bank? Jurado and other councilmembers want to find out
![L.A. City Councilmember Ysabel Jurado, a woman with medium skin tone, speaks in front of a black podium in front of a group of people holding a sign that partially reads "Public [bank] LA"](https://scpr.brightspotcdn.com/dims4/default/81f5bbf/2147483647/strip/true/crop/780x520+0+0/resize/1344x896!/format/webp/quality/90/?url=http%3A%2F%2Fscpr-brightspot.s3.us-west-2.amazonaws.com%2Fad%2Ff9%2F6263724a4a01a4c49b5bd16d8202%2Flos-angeles-public-bank-councilmembers.JPEG)
L.A. City Councilmember Ysabel Jurado speaks at a press conference outside City Hall on Friday, May 30, 2025.
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Photo courtesy of Jurado's office
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This story was originally published by Boyle Heights Beat on June 3, 2025.
Three Los Angeles City councilmembers are pooling funds to move forward a long-discussed idea: creating a public bank to serve the city’s residents.
Councilwoman Ysabel Jurado is joining two of her colleagues in pledging $15,000 each from their discretionary funds for a study exploring the feasibility of establishing a public bank in L.A.
“Creating a public bank would be a bold step toward reinvesting our public dollars directly into our communities,” Jurado said in a press release. “Tough economic times give us an opportunity to look at ways we can uplift sustainable local economies.”
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Public banks are nonprofit lending and depository institutions that are owned by a local agency, such as a city or county, with a public mandate to serve the needs of the community, according to Public Bank LA, a volunteer initiative advocating for a city-owned bank in L.A.
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A Los Angeles public bank, the initiative says, could leverage its deposit base and lending power to benefit residents with affordable housing and small business loans.
The city has been exploring the creation of a public bank for years. Back in 2017, Council President Herb Wesson spoke of the creation of a Los Angeles municipal bank in a speech detailing priorities for his final term.
Hugo Soto-Martinez (left), Ysabel Jurado and Eunisses Hernandez have proposed a motion for a study exploring the feasibility of establishing a public bank in L.A.
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Photo courtesy of Jurado’s office
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While L.A. voters in 2018 rejected a ballot measure to establish a municipal bank, Gov. Gavin Newsom signed a state law in 2019 that allows California cities to establish public banks.
On Friday, Jurado — along with Councilmembers Eunisses Hernandez and Hugo Soto-Martinez — introduced a motion proposing to release the funds to “contribute the first tranche of money needed to move forward with the feasibility study.”
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Their three respective districts, according to the motion, “understand this necessary investment to see the long term benefits of financial independence.”
In 2022, Inclusive Action for the City published a brief noting that a public bank for L.A. can help ease the barriers — such as high-interest predatory loans and inequitable distribution of funds — for small businesses seeking to access capital.
Luz Castro, associate director of policy at Inclusive Action for the City, said a public bank in L.A. is a “powerful opportunity to support small businesses and entrepreneurs.” Castro, in a press release, said it could help “boost access to affordable credit and capital in the communities that need it most.”
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But the game has changed: Congress voted to eliminate funding for public media across the country. Here at LAist that means a loss of $1.7 million in our budget every year. We want to assure you that despite growing threats to free press and free speech, LAist will remain a voice you know and trust. Speaking frankly, the amount of reader support we receive will help determine how strong of a newsroom we are going forward to cover the important news in our community.
We’re asking you to stand up for independent reporting that will not be silenced. With more individuals like you supporting this public service, we can continue to provide essential coverage for Southern Californians that you can’t find anywhere else. Become a monthly member today to help sustain this mission.
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