One big thing:
Your bank account is more powerful than you think. It’s the engine that drives our entire economy.
Why it matters:
Utah’s state and local governments are parking $30 billion in reserves outside the state, missing a massive opportunity to fuel local economic growth through the power of bank lending.
The big picture:
Banks don’t just store money — they multiply it. When banks make loans, they create new money in the economy while keeping original deposits safe and accessible.
By the numbers:
- $30 billion in state and local government reserves are currently invested outside Utah
- Local banks could transform this into $60 billion of economic impact through lending
- Utah needs 35,000 new starter homes in the next five years
How it works:
When a bank makes a $1 million business loan, that money doesn’t disappear from depositors’ accounts. Instead, there’s now $2 million working in the economy — the original deposits plus the new loan.
The catch:
Some government officials chase marginally higher interest rates overseas, missing the bigger picture of local economic multiplication.
What they’re saying:
“We can’t afford to send our money overseas for minimal gains when we could double it here at home,” says Howard Headlee, president and CEO of the Utah Bankers Association.
Between the lines:
The Community Reinvestment Act has required banks to reinvest in their local communities for 50 years. This framework ensures local deposits fuel local growth.
The bottom line:
With Utah’s rapid growth creating urgent needs for housing and infrastructure, bringing the state’s $30 billion home could catalyze transformative development while keeping tax dollars working in the communities where they were collected.