Public banking refers to financial institutions owned and operated by government entities, such as states or municipalities. These banks aim to serve the public interest by providing affordable loans, promoting economic development, and supporting local projects. Unlike private banks, which prioritize profit, public banks focus on community needs and can reinvest profits back into the local economy. One notable example of public banking is the Bank of North Dakota, established in 1919. It serves as a model for other states considering similar institutions. Public banks can help reduce reliance on private lenders and enhance financial stability within communities.