The people's bank: reimagining central banks as institutions for the common good

Jalal Qanas and Malcolm Sawyer

Chapter 11 in Central Banking, Monetary Policy and the Common Good, 2026, pp 211-222 from Edward Elgar Publishing

Abstract: Central banks, historically focused on price and financial stability, are facing increasing calls to address broader societal challenges. This chapter explores the concept of a people's bank, that is, a reimagined central bank with an expanded mandate to actively promote social and environmental well-being alongside its core functions. Drawing upon the concept of the common good, and further contextualized within debates on mission-oriented finance and ecological economics, the chapter examines the theoretical underpinnings of this model, analyses potential mechanisms for implementation with concrete examples, and critically assesses the challenges, risks, and trade-offs involved. It proposes a more detailed framework for balancing traditional mandates with social and environmental objectives, exploring innovative governance structures that enhance stakeholder representation and accountability, and suggesting metrics for success. The chapter argues that central banks, appropriately reformed and governed as a people's bank, can become powerful catalysts for a more equitable and sustainable future, contributing significantly to the common good while maintaining their essential institutional integrity.

Keywords: Central banking; Common good; Environmental sustainability; Equitable growth; Financial inclusion; Mission-oriented finance; Public policy; Social good (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035348299
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