As the COVID crisis has unfolded, Rochester, NY electedofficials are pushingto establish a public "Bank of Rochester."

"The idea would have the city take the millions of dollars in tax revenue it currently deposits in big commercial banks and park the money in a city owned and operated financial institution that would invest in the local economy, by providing inexpensive and accessible financing to city businesses, developers, and would-be homeowners."

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"It's really just the concept of keeping money locally," Marquez said. "Money generated locally that is recycled is more beneficial to an economy than money that leaves and goes elsewhere."

So, briefly, what happens if the City of Rochester has extra money sitting around? It puts it on deposit at a large bank like Citibank, or perhaps invests in safe-liquid securities like Treasury Bonds. In return it receives the interest on those deposits. For the local Rochester businesses and homeowners, if they need funds to borrow, they secure funding from local or non-local institutions are market interest rates. This particular proposal suggests that depositing the money in a local bank, that then invests all of the money in local projects, is going to be better for the city of Rochester small businesses, entrepreneurs and citizens. Is that obviously true?