What's happening
This bill creates a simplified application and support unit for small banks seeking to join New York's banking development district program.
Why it matters
Reduces administrative barriers for small banks. (those under $5 billion in assets) by requiring a short, easy-to-complete application, potentially increasing participation by community banks in underserved areas.
Creates dedicated support within the state’s banking department. , meaning small banks will have direct assistance navigating both the application process and ongoing participation, which can lower compliance burdens and improve program success.
Aims to boost financial inclusion. by making it easier for smaller, local institutions to open branches in banking development districts—areas often lacking adequate banking services—potentially expanding access to credit and basic banking for residents.
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Who cares
Headline styles
Ease Bank Program Applications
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 7
No co-sponsors yet.
History
- Committed to rules
- Advanced to third reading
- 2nd report cal.
- 1st report cal.1140
- Referred to banks
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
8356
IN SENATE
May 3, 2018
Introduced by Sen. PHILLIPS -- read twice and ordered printed, and when printed to be committed to the Committee on Banks
AN ACT to amend the banking law, in relation to the banking development district program
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 96-d of the banking law is amended by adding a new subdivision 7 to read as follows:
7. The superintendent shall establish for all banks, trust companies or national banks, eligible and seeking to participate in the banking development district program established by this section, and which have total assets of less than five billion dollars, an abbreviated application for such participation. Such abbreviated application shall not be more than three pages, and shall be designed to be completed by such applicant in less than one hour. The superintendent shall further establish, within the banking division of the department, a unit to assist all banks, trust companies or national banks, eligible and seeking to participate in the banking development district program established by this section, with the successful completion and submission of their application, as well as to assist all such banks, trust companies or national banks operating in a banking development district, with their successful participation in such program.
§ 2. This act shall take effect on the ninetieth day after it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15709-01-8
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the banking law, in relation to the banking development district program
Purpose or general idea of bill
This bill would require the superintendent of financial services to establish for eligible banking institutions with assets less than five billion dollars, with an abbreviated application for participation in a banking development district. It would further also require the super- intendent to establish a unit within the department to assist banks with both applications and participation in banking development districts.
Summary of specific provisions
This would add a new subdivision 7 to section 96-D of the banking law to require the superintendent of financial services to:
1. Establish for all banks, trust companies or national banks, eligible and seeking to participate in the banking development district program, and which have total assets of less than five billion dollars, with an abbreviated application for such participation;
2. Assure that such abbreviated application would not be more than three pages, and that it be designed to be completed by such applicant in less than one hour; and
3. Further establish, within the banking division of the department, a unit to assist all banks, trust companies or national banks, eligible and seeking to participate in the banking development district program, with the successful completion and submission of their application, as well as to assist all such banks, trust companies or national banks operating in a banking development district, with their successful participation in such program.
Justification
The banking development district program is authorized under section 96-D of the banking law to encourage banks to operate branches in geographic areas of the state that are found by the superintendent of financial services to be underserved by banking services. This program seeks to provide incentives to banks to offer their services in these underserved communities.
The present application process for participation in a banking develop- ment district, however, is often too time consuming, complex and expen- sive for small banks to successfully navigate, thereby creating a disin- centive for their participation in this important program.
This bill would require the superintendent to create a simplified, abbreviated application for such small banks, as well as a unit within the department to assist banks with their application and participation in this valuable program. It is hoped that such will encourage broader participation in this program, and thereby promote the advancement of more banking services in presently underserved communities.
Prior legislative history
This is a new bill.
Fiscal implications
None Noted.
Effective date
This act would take effect on the 90th day after it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.