Preceding the 2008 Global Recession, and the more than a decade-and-a-half period of low interest rates, the public finance sector could be appropriately seen as a sleepy, rather uninteresting area of business for American commercial banks. However, as interest rates rise and sticky deposits become more important to mid-sized banks, the public sector becomes a valuable tool in a bank’s repertoire.

This program will go over the ins-and-outs of working with public bodies as a commercial bank. The course will first explain why it is important to consider public sector business, the requirements for holding public funds, the differences in working with elected public finance officers and appointed public finance officers, as well as the long-term development opportunities that arise from public finance relationships. Then students will learn the basics of treasury services—from liquidity management to lockbox/checking services to linked deposits and loan-loss guarantee accounts. This section will also go into government programing that can lead to further development opportunities such as small business access to capital incentives and home mortgage incentives. The final section will go over the nuts-and-bolts of public markets, from banking opportunities within the public bond market to custodial services relating to public pension funds.

Attendees who participate in this session will leave with a strong framework of how to approach public finance opportunities, where to find value and how to adhere to the regulatory requirements of holding public funds.

Course Subjects Covered

This program will be a 90-minute review of public finance and how banks can be successful within this important sector. The time will be divided into three sections:

1. Why the public sector?
   • Types of public deposits
   • Types of services banks can offer public bodies
   • Development services and other unique lending opportunities
   • Does politics matter in public finance?
2. Treasury Services
   • Deposit services and linked deposits
   • Liquidity management
   • Lockbox services and checking
   • Wire services
3. Capital Markets and Public Pension Funds
   • The public bond market
   • Public pensions and custodial services

 Target Audience:  Anyone involved with financing public organization