How We Get The Banks We Deserve

Banks can be a force for good. It's an idea that's greeted with skepticism in some circles, given the endless list of inequities and disasters perpetuated by our country's leading financial institutions. But if you're a Next City reader, the idea that financial institutions can be part of the solution isn't foreign, given our senior economic justice correspondent Oscar Perry Abello's in-depth coverage of community development financial institutions, credit unions, alternative lending practice and mission-driven banking.

In his debut book, “The Banks We Deserve: Reclaiming Community Banking for a Just Economy,” Abello makes the case that it's time to shake up America's highly-concentrated banking system by shifting banking's power back to local institutions – thereby putting power back in the hands of local communities.

“If we want to close the racial wealth gap, if we want to make these investments in clean energy and energy efficiency, if we want to make the investments in housing that people can actually afford, we cannot and should not be expecting big banks to come and do that,” he says. “They're not built to do it. We should go to the community-based model.”

Listen to this episode to hear how Abello’s new book demonstrates ways banks’ money-creation power can be democratized. Helping communities tap into that power could address our climate, housing and economic crises.