City lawmakers in Santa Fe, N.M. have revived debate over public banks with a proposal to form a municipal bank that support affordable housing efforts and lending to the underbanked. And, perhaps for the first time, some bankers are interested -- if the initiative will help them make more loans. Previous public banking proposals, many modeled after the Bank of North Dakota, have rarely made it past the drawing board. But public banking advocates hope that smaller municipal banks might be easier to realize. The Santa Fe City Council last month approved a feasibility study to look into a municipal bank. The primary goal is to form partnerships with local banks to expand lending to residents who are "on the marginal side" of being creditworthy, said Santa Fe Mayor Javier Gonzales.