News
Pedro Bryant, Chairman, President, and CEO of Metro Bank, has been elected to the board of directors of the American Bankers Association (ABA). The new board was announced on October 23, 2018 at the ABA National Convention in New York City. "I am honored to have been elected to the board of directors," said Bryant. "This is an exciting time for the banking industry and the ABA is leading the way in helping shape policy decisions that impact banks and the communities they serve."
Low-income communities across the country are set to benefit from a new federal rule designed to encourage economic development. Tax benefits will accrue to investors who put money into projects located in thousands of districts designated as Opportunity Zones. This in turn could stimulate more construction lending at a time when overall CRE lending has stagnated. Projects that otherwise would not get a second glance may now be appealing, said Roger Shumway, chief credit officer at the $1.3 billion-asset Bank of Utah in Ogden. "I see it opening up some areas that we haven't had before," Shumway said. "I can see it helping us quite a bit."
Amalgamated Bank will begin tracking the carbon emissions it is financing through its $3.4 billion loan portfolio, using as a guide the science that would limit global warming to 2 degrees Celsius, which is the goal of the Paris accord. Amalgamated, whose largest shareholder is the Workers United union, will also start measuring the carbon profile of new potential debt issues, as a way to evaluate borrowers' exposure to potential future carbon constraints. Amalgamated plans to work with the Global Alliance for Banking on Values to develop a carbon-accounting system similar to one used by some European banks.
From October 24th-25th, CDBA hosted its first Mississippi Delta bus tour. Over 70 people representing the Federal Housing Finance Agency, Fannie Mae, Freddie Mac, and local CDFI banks and housing associations were in attendance. The bus tour included site visits of highly distressed communities in the Delta, LIHTC neighborhoods, a manufactured housing production facility, rehabilitated historical apartment complexes, and more. The subsequent roundtable discussion in Indianola brought together federal and local stakeholders to discuss the state of single family housing, multifamily housing, manufactured housing lending, and financial literacy and homeownership counseling in the Delta.
The National Federation of Community Development Credit Unions has changed its name to Inclusiv. The Inclusiv name grows out of the organization's commitment to financial inclusion and its dedication to ensuring access to responsible financial products and services delivered at an affordable cost in a fair and transparent manner. The announcement was made at the organization's Annual Conference in Clearwater, Florida. "Inclusiv will build on the 44 year legacy of the Federation to grow the visibility and impact of mission-driven credit unions," said Cathie Mahon, Inclusiv President and CEO.
Sullivan Progress Plaza was the nation's first shopping center operated by African Americans when it was built in 1968 under the direction of the late Rev. Leon Sullivan. Additionally, United Bank of Philadelphia, the city's only African-American owned bank, has operated a branch in the center since 1999 and is one of the plaza's oldest tenants. "Progress Plaza has really been our mainstay," said Evelyn Smalls, president and CEO of United Bank. "It meant a lot to bank being there and at the same time having accessibility to clients that we were attempting to bring into the financial system in a consistent way."
Carver Federal Savings Bank was founded in 1948 with a mission to serve African Americans who were shut out of mainstream financial services. Over the past seven decades as a historically minority-managed community bank, Carver has experienced firsthand the benefits of diversity throughout all levels of its organization. Today, the bank boasts eight branches across New York City, including four in Brooklyn, three in Manhattan and one in Queens, as well as a robust mobile banking platform.
The Treasury Department will soon outline rules stemming from the $1.5 trillion tax overhaul last year that are aimed at giving investors confidence to pour billions of dollars into distressed areas. Investment banks, venture capitalists, and real estate developers have been eagerly awaiting guidance for so-called opportunity zones. These zones are identified to attract capital to areas where investment has lagged by allowing investors to avoid some taxes when they fund projects there. But critics have warned that this could just hasten gentrification and serve as a tax shelter for wealthy investors.
The financial crisis and recession of 2008 made the availability of capital a significant concern for community banks and led many to seek out additional sources to rebuild their equity. The need for capital may have been even greater for some minority-owned financial institutions, as the markets they serve were hit especially hard by the financial crisis in 2008. This report explores the many recapitalization efforts at minority-owned financial institutions. This allows readers to better understand how some minority banks succeeded in raising new capital, and to identify the trends and policies that might improve capital access in the future.
Nearly every major American bank has a lofty set of values and principles. However, many Americans still distrust the banking industry. After five years of slow improvement in public perception since the financial crisis, American Banker reported in January that banks were backsliding again, with only 52% of consumers trusting their banks to do the right thing, down from 66% last year. Why then is there such a big disconnect between how Americans see their banks and how banks see themselves?