Public banks owned by the state are not run by the state.
The officers of the bank report to a board or commission defined by the charter of the bank so as to ensure freedom from conflicts of interest, commitment to follow sound banking principles, and service to the public interest.
First, it can issue bank credit loans for up to 90% of qualifying deposits, thereby using the fractional reserve system to multiply the value of its deposits with the credit it creates through the loans it makes.
Public Banking for Small Business and Community Development Nearly 1.
In its lending priorities, it shall promote community ownership and community wealth building, including investments in permanently affordable housing, locally-owned social enterprises, cooperatives, and community-based nonprofit organizations.
The local banks are its branches.