Washington, DC — Today, the National Community Reinvestment Coalition (NCRC) applauded the passage of a local responsible banking ordinance in San Diego, California. “Local governments across the nation are continuing to pass measures to induce banks to invest in our communities in a responsible way,” said NCRC President and CEO John Taylor. “This is […]
Washington, DC – Today, the National Community Reinvestment Coalition (NCRC) and its member organization, the Association for Neighborhood and Housing Development (ANHD), released a set of resources to aid the advancement of local responsible banking ordinances in cities throughout the nation. Local responsible banking ordinances are laws designed to ensure responsible loans, investments, and services […]
Background on Local Responsible Banking Ordinances Local responsible banking ordinances are laws designed to ensure responsible loans, investments, and services for modest-income and minority neighborhoods. The ordinances require an evaluation of financial institution performance in serving modest-income and minority neighborhoods as part of the criteria for deciding which institutions receive municipal deposits and other city […]
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Call for Swift Passage of Responsible Banking Act (Intro. 485)
Council members, advocates and community residents gathered on the steps of City Hall today to demand that banks be held accountable, and to call for the passage of the recently introduced Responsible Banking Act (Intro. 485 – Vann, Recchia). The press conference followed a hearing on the legislation in the New York City Council Committees on Community Development and Finance, also held today.
The Responsible Banking Act is important new proposed legislation that will create a ranking system of banks seeking city deposits based on how responsive they are to the needs of New York City’s neighborhoods. By holding banks that store the city’s money more locally accountable, the bill would incentivize these financial institutions to engage in practices that are beneficial to all New Yorkers and strengthen their community development efforts in New York City. An evaluation of how these banks contribute to the needs of the City and its communities would be a transparent and important tool of the city in determining which banks it deposits its funds.
The bill is not only a response to the aftermath of predatory lending and other harmful bank practices that contributed to the national financial crisis, but also to continued disengagement by banks within underserved communities. As the effects of this continue to be felt in our city, it is imperative that New York City take affirmative steps to rebuild and strengthen its partnerships with the banking community. The Responsible Banking Act creates the transparency and oversight necessary to achieve this. The bill would require the Department of Finance, in its role on the NYC Banking Commission, to collect important information related to community development activities performed by banks wanting to be city depositories. These would include whether they provide: mortgage loan restructuring for struggling homeowners; financing for the construction of affordable housing; and/or credit and financial services for small businesses, among other criteria.