My interpretation is that, because the public bank is doing the lending, the city collects on any interest payments made on loans they provide. Because all mone

My interpretation is that, because the public bank is doing the lending, the city collects on any interest payments made on loans they provide. Because all money on loan from the bank is generating income for the city, the net income is greater than if they simply collected interest from their stash of money in another, public bank.