What is CDBA?

Community Development Bankers Association (CDBA) is the national trade association of the community development bank sector. We are the voice and champion of banks and thrifts with a mission of serving low and moderate income communities.

How Does CDBA Promote the Sector?

CDBA educates policymakers, regulators, legislators and the general public on the importance of Community Development Banks. We spread understanding of the unique circumstances our banks operate under and the special needs of our institutions. CDBA leads the growth and development of our sector, building healthy institutions with the capacity to promote access to capital and financial services in distressed and underserved communities.

What are Community Development Banks?

Community Development Banks (often called CDFI Banks) are FDIC-insured banks or thrifts that have a primary mission of promoting community development.

These institutions are different from traditional banks and thrifts. They target low and moderate income markets, working in urban and rural communities that lack access to credit and are not adequately served by the traditional banking industry.

Community Development Banks are certified Community Development Financial Institutions (CDFIs). This certification, administered by the U.S. Treasury Department’s CDFI Fund, indicates the bank has devoted at least 60% of its total lending, services, and other activities to benefit low income communities.

Community Development Banks...

• Build wealth in communities by investing in areas underserved by the traditional banking sector.

• Engage in a wide range of lending to support affordable housing, small business, community facilities, mixed use facilities and commercial real estate, and consumers. Community Development Banks provide financial services and technical assistance to low-income consumers in order to help move these individuals from the unbanked to the formal banking sector.

• Provide technical financial assistance to make sure their customers are informed consumers, and understand the products and services they are receiving.

• Do not practice predatory lending, including abusive payday loan products or predatory mortgage lending.

• Represent a variety of institutions, including state and nationally-chartered banks and thrifts both urban and rural. Most are privately held institutions with support from socially motivated investors