A state bank would create almost 100 jobs and boost gross state output by $15 million-$21 million annually, according to a report prepared for the William J. Hughes Center for Public Policy at Stockton University.
The report, “Exploring a Public Bank for New Jersey: Economic Impact and Implementation Issues,” was prepared by Economics Professor Deborah Figart at Stockton University, in response to Gov. Phil Murphy’s ongoing support for the creation of a state bank.
It estimates that every $10 million in new credit or lending by a state bank would yield between $15 million and almost $21 million in gross state output and between $3.5 million and $5.2 million in state earnings, and create between 60 and 93 new jobs as the result of additional lending.
Figart also recommends that Murphy create a team of independent consultants to conduct a feasibility study for the proposed bank and that the team focus on answering several questions, including:
“The exiting empirical research demonstrates that state banks would increase total lending within a state rather than [take from] local lending by local community banks working within their communities,” Figar told NJBIZ in an email. “This can seem unexpected but lending is not a zero-sum game.”