Community Development Banking News
CDFI Banking: Industry, Policy, and Beyond.
"The Treasury Department is warning that state laws that restrict banks from considering environmental, social and governance factors could harm efforts to address money laundering and terrorism financing.
The Associated Press obtained a copy of the letter sent Thursday to lawmakers. The letter singled out a law signed by Florida Gov. Ron DeSantis in May that says it would be an 'unsafe and unsound practice' for banks to consider non-financial factors when doing business. The letter concludes that 'such laws create uncertainty and may inhibit' national security efforts."
The Department of the Treasury has released a report on 2023 Qualified and Deep Impact Lending of community financial institutions (CDFI and MDI banks and credit unions) participating in the ECIP. Per Treasury:
"In approximately 18 months, ECIP participants originated a total of $58.3 billion in loans, of which more than one third was to the most underserved borrowers. Approximately three quarters, or $43.0 billion, of these originations was Qualified Lending. More than one third of these total originations, or $20.6 billion, was Deep Impact Lending to the most underserved borrowers."
Read the report below.
"Optus Bank Chairman Paul Mitchell and the Board of Directors today announced the appointment of Benita Lefft as President of the Bank. Lefft will oversee the primary operating lines of business, risk management, finance, and all support functions for the Bank. Dominik Mjartan will continue as CEO and assume the duties of Vice Chairman of the Board."
"In June, the Community Development Bankers Association (CBDA) hosted its annual conference over three days in Washington, D.C. Community development finance practitioners and partners from across the country gathered to exchange ideas, share best practices, and tell stories of impact. . . .
One of the standout themes of the conference was the focus on deposit management and liquidity strategies for CDFIs and MDIs. In a session on best practices for raising deposits, experts shared actionable insights on attracting and retaining deposits, crucial for maintaining growth and sustainability in today's financial climate."
"A powerful conservative organization with advisors close to former President Donald Trump is proposing a full-scale overhaul of the federal government, including the role it plays in the banking system, upping the stakes for bankers in the 2024 presidential election.
In 2016, Trump won the presidency as a relative unknown in banking policy circles, said Ed Mills, managing director and Washington policy analyst at Raymond James.
'And the banks woke up the day after the election without knowing virtually anyone in the Trump orbit, and they didn't have a plan about what they wanted to ask for from the Trump administration,' he said. 'Neither Trump nor the banks are going to make the same mistake this time.'"
"The Federal Reserve's chief regulator praised industry efforts to expand access to financial services but cautioned that such initiatives can present financial stability risks.
While banks have played a 'pivotal role' in improving financial inclusion, Fed Vice Chair for Supervision Michael Barr said their reliance on financial technology, or fintech, partners to do so creates risks that must be carefully managed.
'Innovations in banking services are important to improving financial inclusion,' Barr said. 'But to have a durable impact on society, innovations must be adopted responsibly.'"
"The Mission Driven Bank Fund (MDBF) today announced its second close of $65 million, bringing the Fund to over $177 million of capital dedicated to supporting FDIC-insured Minority Depository Institution (MDI) and Community Development Financial Institution (CDFI) banks in closing the racial wealth gap.
The Fund welcomed new limited partners, which include banks with assets ranging from $6 billion to over $150 billion. Some of the bank limited partners participating in the second close include Lake City Bank, Enterprise Bank & Trust, Hancock Whitney Bank, and Banner Bank."
Congratulations to all of our members included on ICBA's 2024 Top Lenders lists!
"Whether it's navigating tumultuous markets or providing employees with remote work options, flexibility is a key component in the success of this year's ICBA top lenders. These community banks have stepped up to thoughtfully support customers' goals from application to completion."
"The Senate Banking Committee will consider the nomination of Christy Goldsmith Romero to chair the Federal Deposit Insurance Corp. on July 11, the panel announced.
Goldsmith Romero, who currently sits on the board of the Commodity Futures Trading Commission, was just recently announced as the Biden administration's pick to lead the FDIC in the wake of a workplace misbehavior scandal at the agency.
The committee, in the same hearing, will also consider the nominations of Caroline Crenshaw to be a member of the Securities and Exchange Commission, Kristin Johnson to be assistant secretary of financial institutions at the Treasury Department and Gordon Ito to be a member of the Financial Stability Oversight Council with expertise in insurance."
"Technology has changed the way financial services companies operate. As financial institutions innovate and develop new solutions, an unfortunate side effect of the banking industry's growth is that some communities have been marginalized or ignored.
Community Development Bankers Association (CDBA) began in the early 2000s and is the national trade association of the community development bank sector. The organization has enjoyed stable leadership — Jeannine Jacokes has been CDBA's CEO since it began.
The association started shortly after the establishment by the U.S. Treasury Department of the Community Development Financial Institutions (CDFI) Fund, which offers community development banks resources and programs that invest federal dollars to help them support economically disadvantaged communities."