MBA is actively monitoring and opposing several pieces of legislation that explore the establishment of a public bank (in several different forms) on behalf of the industry. Under these bills, the Commonwealth would establish a financial institution authorized to take deposits from the state, municipalities and other political subdivisions and then lend that money to businesses, intermediaries, and municipalities to achieve a long list of goals. These bills are not clear as to how large public bank could become in the future or if there is any limit to the number of deposits the institution can accept; however, given the bank’s expansive mandate, it will be a substantial competitor to local banks in attracting these deposits. The bills also specifically allow the public bank to pay interest on public deposits, further exacerbating the competitive concerns since the bank could be subject to pressure from government officials to maximize their rate of return.