News

New York Fed | Tuesday, September 24, 2019

The New York Fed unveiled a new tool—the Credit Insecurity Index—to provide policymakers and the broader public with a more comprehensive measure of credit access and community credit health. Unlike other metrics that focus on residents without a credit file or score, the Credit Insecurity Index also includes individuals who may have credit files but are limited in their ability to borrow at affordable terms due to blemishes on their records. A new series of reports—Unequal Access to Credit: The Hidden Impact of Credit Constraints—offers in-depth analysis using the new index, including potential policy applications.

CDBA & inclusiv | Friday, September 20, 2019

On Wednesday, September 18, 2019, the U.S. Treasury Department announced $25.2 million in Bank Enterprise Awards (BEA) by the US Treasury Department's Community Development Financial Institutions (CDFI) Fund. 38 banks certified as CDFIs received awards for their efforts to channel $19.4 million of deposits into 18 CDFI credit unions to support their lending in distressed communities. In 2016, the Community Development Bankers Association and Inclusiv began working together to play matchmaker between CDFI banks participating in the BEA Program and CDFI credit unions. While traditional banks and credit unions wage fierce battles over market share, tax status, and a host of regulatory issues, CDFI banks and CDFI credit unions work together to combat poverty.

Certified B Corporations | Wednesday, September 4, 2019

Every year, B Lab recognizes the top-performing B Corps creating the greatest impact through their businesses. Honorees are recognized for having the highest environmental, community, customer, worker and overall impact by earning a score in the top 10% on the B Impact Assessment, as well as a list recognising B Corps with the greatest impact improvement (the changemakers). These businesses are proving that competing not only to be best in the world but best for the world is a winning strategy, and they can lead the way as mainstream businesses join our movement. This year, 4 CDBA members were named Best for the World: Beneficial State Bank, Spring Bank, Sunrise Banks, and Virginia Community Capital.

City First Bank of DC | Monday, August 26, 2019

City First Bank of DC has released their 2018 impact report in addition to an anthology highlighting their 25th anniversary. The anthology tells the historic and vibrant stories of social impact that have been critical to City First's community economic development over the past twenty-five years. City First was chartered with a mission of investing intentionally in low wealth neighborhoods to revitalize historic corridors like U Street and H Street. City First is committed to nonprofits, entrepreneurs, and families. In this anthoogy, you will meet the social entrepreneurs that dared to rebuild our urban landscape. 

Planters Bank & Trust Company | Friday, August 23, 2019

Planters Bank announces that Alan Hargett is assuming the role of Chief Executive Officer on September 1, 2019. Hargett, a native of Ruleville, began his banking career with Planters as a management trainee in the Planters Indianola office in 1989 the same year he earned his Bachelor's degree from Mississippi State University. He currently serves as President and Chief Operating Officer of Planters Bank. Hargett is a member of the Planters Board of Directors and serves on the board and executive committee of the Mississippi Bankers Association.

New York Times | Tuesday, August 20, 2019

A decade after big banks needed government support to dig out of the financial crisis, the Federal Reserve is slowly, but steadily, making a series of regulatory changes that could chip away at new requirements put in place to prevent a repeat of the 2008 meltdown. Some of the changes, seemingly incremental and technical on their own, could add up to a weakening of capital requirements installed in the wake of the crisis to prevent the largest banks from suffering the kind of destabilizing losses that imperiled the United States economy. Another imminent change will soften a rule intended to prevent banks from making risky bets with customer deposits. Fed officials and others who support the changes, including big banks, say the Fed is engaging in what they call “tailoring” — a regulatory correction that will bring greater efficiency to standards written in the heat of a meltdown. But some current and former Fed officials worry that the central bank and its fellow regulators are giving large banks, which are making big profits, an unnecessary gift that could leave the economy exposed in the next downturn. 

American Bankers Association | Friday, August 16, 2019

The Mississippi Backwater Flood of 2019 has been a devastating event for the residents of the South Delta in Mississippi. The people, farms, businesses, homes, and wildlife have been affected for months with the impact lasting for years to come. Bank of Anguilla has been a huge part of the community for 115 years and will continue to support and provide relief to the South Delta in helping overcome this disaster.

Legacy Bank and Trust | Thursday, August 15, 2019

Legacy Bank and Trust invited Rep. Billy Long (MO-07) to their offices over the Congressional Recess to discuss the importance of CDFIs in the community. Pictured from left to right are: Brandon Taylor, CFO of Legacy Bank; Rep. Billy Long (MO-07); John Everett, President and CEO of Legacy Bank; and Brett Mager, Chief Lending Officer of Legacy Bank.

The Hill | Tuesday, August 13, 2019

The relative rarity of banks in nonwhite neighborhoods is exacerbating the racial wealth gap by leaving African Americans more reliant on expensive financial services such as payday lending institutions, according to Reuters, citing research by McKinsey & Co. The study found that majority-white counties have an average of 41 financial institutions per 100,000 people, compared to 27 in nonwhite majority neighborhoods. It also found banks in majority-black neighborhoods tend to require a higher minimum account balance, with an average minimum of $871 in black neighborhoods compared to $626 in white neighborhoods.

Forbes | Tuesday, August 6, 2019

Everyone should consider impact investing, says Lori Chatman, SVP at Enterprise Community Investment. "Increasingly, investors are demanding positive social outcomes without sacrificing return or assuming undue risks," says Chatman. Being intentional about desired non-financial outcomes is core to impact investing or values-based investing. For nearly 40 years, Community Development Financial Institutions (CDFIs) have been making investments that impact people’s lives, communities, and the planet. According to Chatman, they are a prime vehicle for investors and asset managers seeking impact. For example, on the financial return side, investing in housing that is affordable for low- and moderate-income families is not susceptible to market cycles, delivers a steady return, and has a loss rate of less than 50 basis points. On the impact side, such investments enable parents to spend more time with their children without needing to work multiple jobs just to keep a roof over their heads.

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