Louisiana House Bill HCR144

Louisiana 2011 Regular Session

• Introduced: 6/2/11
• Engrossed: 6/6/11
• Report Pass: 6/8/11

Caption

Requests the state treasurer and the Office of Financial Institutions to jointly study the creation of a state-owned bank

Impact

If implemented, the creation of a state-owned bank could transform the landscape of financial institutions in Louisiana. It may allow the state to better leverage funds for local development initiatives, including agriculture, education, and community projects. Additionally, this new financial institution could work collaboratively with existing banks, enhancing their ability to meet the needs of Louisiana's citizens while investing in projects that promote the common good and public welfare.

Summary

House Concurrent Resolution 144, introduced by Representative Schroder, requests the state treasurer and the Office of Financial Institutions to jointly investigate the feasibility of establishing a state-owned bank in Louisiana. This resolution is inspired by the successful model of the Bank of North Dakota, which has served as a stable financial partner for local economies and has significantly contributed to the state’s general fund. It emphasizes the potential benefits such a bank could bring, particularly in the areas of economic development, community partnerships, and financial stability for public funds.

Sentiment

The sentiment surrounding HCR 144 has been largely positive, particularly among those who believe in the potential for economic growth and stability that a state-owned bank could foster. Supporters argue that it would not only improve access to capital for state projects and initiatives but could also serve as a model for other states considering similar solutions. However, discussions around the resolution indicate some concerns about the operational aspects and efficacy of such a bank, particularly regarding competition with private institutions.

Contention

One notable point of contention that arises from HCR 144 involves the balance between state-owned financial institutions and private banks. Critics may argue that a state-owned bank could unfairly compete with private entities, potentially leading to market distortions. Proponents counter that the bank would create partnerships rather than competition, helping to stabilize the economy without undermining the existing banking framework. The debate ultimately centers on the role of government in banking and finance, and how best to serve the public interest while ensuring a robust economic environment.