What's happening
This bill requires written assessments of banks’ community credit performance to specifically address several detailed performance factors.
Why it matters
Mandates greater transparency and detail. By requiring written assessments to specifically address each performance factor, the bill ensures that the public, regulators, and stakeholders get a clearer picture of how banks are serving community credit needs, especially in low- and moderate-income neighborhoods.
Strengthens accountability for banks. Banks will now face more rigorous and standardized scrutiny during applications for new branches, mergers, and other major actions, making it harder to overlook shortcomings in community service.
Empowers public oversight. Since these detailed assessments must be made available upon request, community groups and individuals can more effectively monitor and advocate for equitable banking practices in their neighborhoods.
Could influence banking decisions and practices. Knowing that each performance factor will be publicly assessed and documented may incentivize banks to improve their lending and service to underserved areas to avoid negative evaluations and potential regulatory hurdles.
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Who cares
Headline styles
Require Written Bank Assessments
Plain English, a few words. Used as the page title.
Sponsors
History
- Substituted by S3227A
- Ordered to third reading rules cal.96
- Rules report cal.96
- Reported
- Reported referred to rules
- Reported referred to ways and means
- Print number 1772a
- Amend and recommit 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.
Bank Assessments Must Be Written
Signed by Governor · Sponsor James Sanders Jr.
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1772--A
2019-2020 Regular Sessions
IN ASSEMBLY
January 17, 2019
Introduced by M. of A. PEOPLES-STOKES, CRESPO, RODRIGUEZ, WEPRIN, PERRY, DICKENS -- read once and referred to the Committee on Banks -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
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
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The opening paragraph of paragraph (a) of subdivision 3 of section 28-b of the banking law, as amended by chapter 227 of the laws of 2013, is amended to read as follows:
When taking any action on an application or notice made by a banking institution under (i) section one hundred five, two hundred twenty-four, two hundred forty, or three hundred ninety-six of this chapter for a branch office, (ii) section one hundred ninety-one of this chapter for a public accommodation office, (iii) section six hundred one-b of this chapter for approval of a merger or purchase of assets, or (iv) under section one hundred five-a, two hundred forty-a or three hundred ninety-six-a of this chapter for the use or installation of an automated teller machine, point-of-sale terminal or similar electronic facility or on any other application or notice to which the superintendent of financial services shall by rule or regulation make applicable the provisions of this section, the superintendent shall take into account, among other factors, an assessment, in writing, of the record of performance of the banking institution in helping to meet the credit needs of its entire community, including low and moderate-income neighborhoods, consistent with safe and sound operation of the banking institution. Such assessment and any written communications from the department of financial services to a banking institution relating to such assessment shall be made available to the public upon request, provided that nothing
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04697-05-9
A. 1772--A 2
contained in this subdivision shall be deemed to alter, amend or affect the provisions of subdivision ten of section thirty-six of this chapter. In making such assessment the superintendent shall review all reports and documents filed with him or her pursuant to subdivision one of this section and any signed, written comments received by the superintendent which specifically relate to the banking institution's performance in helping to meet the credit needs of its community. In addition, the superintendent shall consider the following factors in assessing a banking institution's record of performance, and include in its written assessment required by this section the record of performance of such banking institution as to each of the following factors:
§ 2. This act shall take effect on the one hundred twentieth day after it shall have become a law. Effective immediately, the addition, amendment and/or repeal of any rules or regulations necessary for the implementation of the foregoing section of this act on its effective date are authorized to be made on or before such effective date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.