Indiana House Bill HR0009

Indiana 2022 Regular Session

• Introduced: 1/24/22

Caption

A RESOLUTION urging the Legislative Council to assign to the Interim Study Committee on Tax and Fiscal Policy the task of studying factors that limit the access of Indiana residents to commercial banks and whether the state of Indiana should establish a publicly owned bank to expand access to banking services, to enhance investment in community development, and to provide a means of relieving student loan burdens.

Impact

The resolution proposes that a publicly owned bank could enhance community investments and provide an avenue for relieving burdens associated with student loans. Such an institution would prioritize public welfare over profit motives typically associated with traditional banking, which primarily focuses on shareholder gains. Drawing inspiration from North Dakota, which has successfully operated a publicly owned bank since 1919, the potential establishment of a similar institution in Indiana could address long-standing barriers to banking access and create more inclusive financial avenues.

Summary

House Resolution HR0009 urges the Legislative Council of Indiana to assign the Interim Study Committee on Fiscal Policy the task of examining the factors that limit residents' access to commercial banking services. The resolution highlights the importance of having accessible banking institutions for Indiana residents, especially those classified as 'unbanked.' According to a 2019 study by the FDIC, around 4.5% of households in Indiana lacked checking or savings accounts, demonstrating a need for improved financial accessibility within the state. The resolution emphasizes that every household in Indiana should have geographic and operational access to banking services.

Contention

While HR0009 provides a roadmap for addressing these issues, the call for a study and potential establishment of a publicly owned bank is likely to face scrutiny. Critics may argue about the feasibility and economic implications of creating and maintaining a publicly funded banking institution. Concerns often revolve around government overreach into the financial sector and the potential financial risks associated with taxpayer-funded banking initiatives. Additionally, there may be discussions on how effectively such a bank could operate alongside existing private banking institutions and whether it could truly meet the diverse needs of Indiana residents.