Community Development Banking News
CDFI Banking: Industry, Policy, and Beyond.
"Spring Bank is proud to announce the grand opening of its newest branch in Red Hook, Brooklyn. This new location, 356 Van Brunt Street, Brooklyn, NY, will further our mission to expand access to financial services for consumers and small businesses in underserved neighborhoods.
Red Hook, a vibrant and diverse community, has faced challenges in accessing essential banking services and had previously been one of New York City's 'banking desserts.' Spring Bank aims to address this scarcity and provide residents and local businesses with financial tools and services to create wealth and financial security."
"Pulaski Savings Bank of Chicago, Ill. was closed today by the Illinois Department of Financial and Professional Regulation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect depositors, the FDIC entered into a purchase and assumption agreement with Millennium Bank of Des Plaines, Ill., to assume all deposits of Pulaski Savings Bank."
During Senate confirmation hearings yesterday, both Treasury nominee Scott Bessent and HUD nominee Scott Turner highlighted the critical role of CDFIs in expanding access to capital and driving economic development in underserved communities.
These mentions reflect the growing bipartisan recognition of the essential work CDFIs and CDFI banks do every day—and it's a testament to the incredible advocacy efforts of our members.
"Bessent expressed his commitment to working with Warner and other lawmakers to enhance the role of CDFIs in underserved communities.
'The early part of my career was as a financial services analyst, I believe that the breadth of the U.S. financial services industry is what differentiates the U.S. economy from the rest of the world,' Bessent said. 'The addition of these CDFIs into these underserved communities is very important.'"
Congratulations to Kent Curtis, President and CEO of First Southwest Bank and Immediate Past Chairperson of the Community Development Bankers Association Board, on being recognized in the 2024 Who's Who in Impact Investing by the Denver Business Journal and the Impact Finance Center!
Under Kent's leadership, First Southwest Bank has exemplified the mission of a Community Development Financial Institution, dedicating itself to driving economic growth and providing equitable access to capital for underserved communities across Colorado. From securing CDFI certification in 2014 to creating the First Southwest Community Fund, Kent's vision and commitment to impact investing have fueled positive and lasting social and economic change.
As FSWB Board Chair Jennifer Ostenson said, "Kent's vision and passion for impact investing have made him a true thought leader, not just in Colorado but within the larger field of community development finance."
We're proud to have Kent as a valued leader at CDBA and celebrate this well-deserved recognition of his remarkable contributions to community development and impact finance.
"Federal Deposit Insurance Corp. Vice Chair Travis Hill, poised to lead the agency, outlined his priorities, including minimizing the regulatory burden on banks, distancing the agency from climate-related rules and politically motivated oversight like Operation Choke Point, and fostering a friendlier environment for digital assets.
In his remarks — delivered to a crowd at the American Bar Association's Banking Law Committee Meeting on Friday — Hill shed light on the path forward for a key regulatory issue in banking: the Basel III endgame capital requirements set to be revisited under the Trump-era FDIC."
"The Federal Reserve's resident voice of dissent to Biden-era bank policy is calling for 'pragmatism as a guiding principle' to regulation and supervision under President-elect Donald Trump.
In a speech on Thursday, Fed Gov. Michelle Bowman said she was 'optimistic' that the change in administration will open the door for a more collaborative dynamic between banks and the agencies that oversee them."
"The Federal Reserve Board announced on Monday that Michael S. Barr will step down from his position as Federal Reserve Board Vice Chair for Supervision, effective February 28, 2025, or such earlier time as a successor is confirmed. Barr will continue to serve as a member of the Federal Reserve Board of Governors."
"State Street Corp. completed its $100 million initiative launched earlier in 2024 by placing additional deposits through three Minority Depository Institutions (MDIs) and Community Development Financial Institutions (CDFIs) — New Orleans, Louisiana-based Liberty Bank and Trust Co., Denver-based Native American Bank NA and Saint Paul, Minnesota-based Sunrise Banks NA.
In February, the company announced a goal to invest $100 million to facilitate low-cost, stable deposit funding to MDIs and CDFIs. State Street said the investment aligns with its broader business strategy to expand the financial market ecosystem and promote economic potential through long-term growth and job creation."
"Evan Weinberger, the banking reporter at Bloomberg Law, talks about the Trump administration's trial balloon to eliminate the FDIC or combine regulatory agencies. He also goes in-depth on the various fights the CFPB is engaged in, how the Trump administration could choose to tackle them, and what that would mean for banks."
"The Mission Driven Bank Fund (MDBF) today announced that all seven portfolio banks are actively participating in its technical services program, which provides targeted support to the Fund's portfolio banks to build organizational capacity. The participation rate is well above the program's 75% goal.
All MDBF portfolio banks have access to the technical services program upon a capital investment. The program, designed to be collaborative, has two key goals. The first is to promote sustainability by strengthening the bank's financial performance and building staff capacity. The second is to help banks better serve their communities by deepening or growing their existing clients, expanding service areas, and/or investing in technology to improve the customer experience."