New Jersey Governor Phil Murphy said he intends to implement plans to open a state-owned bank.
In November 2019, Murphy signed Executive Order No. 91 to create the Public Bank Implementation Board. The board was given a year to develop an implementation plan for a public bank.
At the time, state officials said a public bank could generate revenue, boost jobs and economic growth, and help local governments cut their debt costs. It would also provide additional banking opportunities for “underserved communities”.
While the COVID-19 pandemic slowed plans for a public bank, Murphy predicted during a virtual press conference Monday that a version of this would take place during his second term.
“The state bank, I think a version of this is going to happen,” Murphy said during the briefing. “We had a good meeting just before the Christmas holidays. There is a way forward and I think you will see real progress on that front.
“That was one of the harder ones for us for many legitimate reasons,” added the governor. “From the outside it looked like it would be easier to get into the office and you can tell that some things are not as easy as you had hoped. That’s on this list, and I think the pandemic and the challenges facing individuals, families, businesses, communities, especially college loan students – I think they’ve sharpened the need for it, rather than decreasing it. “