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- Referred to banks
- Referred to banks
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Requires inclusion and explanation of additional annual data in assessing record of performance of banking institutions in meeting community credit needs
In Senate Committee · Banks · Sponsor Hakeem Jeffries
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the banking law, in relation to assessment of the record of performance of banking institutions in helping to meet the credit needs of local communities
Purpose or general idea of bill
Under current law, the Department makes a periodic assessment of a bank's record in the requirements of the Community Reinvestment Act (CRA).
This legislation requires the assessment to also include a separate explanation of the record of the bank pertaining to each of the twelve individual assessment factors listed under the CRA, with a separate discussion of how well the bank satisfied each factor.
The discussion relates to loans the bank has made in its community and the scope of its efforts to market small business loans in low and moderate income areas. The explanation is to be made available to the public.
Summary of specific provisions
This bill amends section 28-b (3) (a) of the banking law to require a bank's CRA evaluation to include a discussion of their performance record on each of the 12 assessment factors listed in the Community Reinvestment Act; an explanation of how each of the 12 factors was considered by the Department in making the assessments. Also, this bill makes reference to the Superintendent of Banks in a gender neutral manner.
Justification
The lack of detail in the CRA assessments results in assessments that are uninformative to community leaders and others seeking to work with banks to increase the bank's local community lending and overall social responsiveness.
The problem with the CRA rating became particularly apparent when a law requiring the Banking Department to annually provide each bank with a numerical CRA "rating" came into effect. Banks which had engaged in widespread closing of branches in poor and middle income neighborhoods were nevertheless given a "1" or "outstanding" CRA rating. The assessment summaries released to the public with these ratings were very short and did not include any sort of detailed discussion of how the Department considered each of the twelve CRA factors; it was impossible to see what weight the Department gave the bank's record of performance in opening and closing branches.
Prior legislative history
A.1801 of 2007-08
Fiscal implications for state and local governments
None.
Effective date
120th day after enactment.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.