Minority-owned banks are crying foul after being shut out of this year's round of the New Markets Tax Credit (NMTC) program. The NMTC program provides a tax credit to investors who invest in low income communities by funneling their investments through NMTC allocatees. None of the 76 NMTC allocations made this year were awarded to a minority bank. A 2009 study by the Government Accountability Office found that only about 9 percent of minority entities were successful when applying for NMTC allocations, compared to 27 percent of non-minority applicants. "We need our CDFI Fund to do more; we need a real change that will allow us to receive allocations so we can use these resources to improve our communities," said Preston Pinkett, CEO of City National Bank and chairman of the National Bankers Association. 

A report by the Pew Charitable Trusts finds that reloadable prepaid cards are rising in popularity among consumers, particularly the unbanked. Unbanked consumers increasingly treat their cards as checking accounts, using them to receive direct deposits and pay bills. Prepaid card usage increased 50 percent between 2012 and 2014 and 23 million adults in America now use prepaid cards regularly. Much of this growth occurred among consumers with bank accounts who purchased a card at their bank or credit union. Among the risks of the new trend: the report found that many consumers did not fully understand their cards' liability limitations for unauthorized transactions or the binding arbitration clauses mandated by most prepaid cards. 

Thanks to the Special Needs Assistance Program (SNAP program) offered at Ridgeland, Mississippi-based BankPlus, retired chef Allen Crawford will finally have working hot water and a remodeled kitchen in his home. Crawford had been living without hot water for years after his water heater and stove broke. His kitchen floor was caved-in and there were holes in his walls. After applying for the SNAP Program, which provides grants to assist income-qualified, special-needs homeowners with home repairs, Crawford received $5,806 for repairs from BankPlus and FHLB Dallas. "Over the years, we have worked together to help literally hundreds of families with needed home repairs and modifications," said Mark Ouellette, first vice president and director of Affordable Housing at BankPlus.

Risk in the U.S. banking sector is increasing as lenders ease underwriting standards for some categories of loans, the OCC said Tuesday. The share of leveraged loans to companies with debt-to-earnings ratios above the regulatory guidelines rose during 2014. In commercial real estate, banks are facing competition not only from other banks but also from life insurers, private-equity firms and others. As a result, banks are easing underwriting standards and making loans with options including interest-only payments for borrowers. Lenders are also easing the terms of auto loans, extending repayment periods and offering greater amounts of credit compared with the underlying value of the vehicle.