Posted under Economy
Delegate Bill Frick (D-Montgomery) recently introduced an interesting piece of legislation that would encourage the state government and localities to use banks chartered in Maryland for financial services. The Baltimore Sun has the story:
The Maryland General Assembly is considering legislation that would essentially give state-chartered banks an edge when bidding to serve state agencies or local governments.
Del. Bill Frick, a Montgomery County Democrat who sponsored the legislation, says he’s been frustrated watching giant out-of-state banks gouge Marylanders with high fees and rate increases.
“Why do we turn around and give them our money on state contracts?” he says. “Why do we want our state dollars going into Wall Street bonuses instead of local small business loans?”
Frick’s legislation is compelling because Maryland banks are much more likely to take the cash they earn from state government and lend it back to Marylanders. Local lending has significant economic benefit to the state, ultimately leading to more economic growth and higher tax revenue.
The legislation would provide a small edge to local banks when bidding against Wall Street giants for the state’s financial services.
You can check out the full text of Frick’s legislation HERE.
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