You may not realize it, but local governments keep your tax dollars in banks – the same banks we all use. A responsible banking ordinance requires a local government to evaluate how well a bank serves all its citizens, from high to low-income, before choosing to do business with the bank.
No local governments in North Texas have a policy like this. But 13 cities around the country do have some form of a responsible banking ordinance including Cleveland, Minneapolis, Los Angeles, Kansas City and Pittsburgh.
In theory, the idea works because local governments have a lot of cash – hundreds of millions in taxes and fees – to deposit, and that gives them leverage.
