What's happening
This bill requires written assessments of banks’ community credit performance to specifically address each evaluation factor and be made public.
Why it matters
Mandates that written assessments of banks’ community credit performance must specifically address each required evaluation factor. , making the evaluation process more detailed, transparent, and standardized.
Ensures the public has greater access to detailed information about how banks serve all segments of their local communities, including low- and moderate-income neighborhoods. , which can empower community groups and individuals to hold financial institutions accountable.
May influence banks to improve their practices in meeting community credit needs. , since their performance on each evaluation factor will be publicly disclosed and scrutinized.
Requires the Superintendent of Financial Services to provide clearer, more structured feedback in assessments. , potentially leading to more consistent regulatory oversight and more effective community reinvestment.
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Who cares
Headline styles
Bank Assessments Must Be Written
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
History
- Signed chap.590
- Delivered to governor
- Returned to senate
- Passed assembly
- Ordered to third reading rules cal.96
- Substituted for A1772A
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 43–19
- Amended on third reading 3227a
- Advanced to third reading
- 2nd report cal.
Show 2 earlier actions
- 1st report cal.649
- 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.
Require Written Bank Assessments
Assembly Floor Calendar · Sponsor Crystal Peoples-Stokes
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3227--A Cal. No. 649
2019-2020 Regular Sessions
IN SENATE
February 4, 2019
Introduced by Sens. SANDERS, PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Banks -- reported favorably from said committee, ordered to first and second report, ordered to a third reading, amended and ordered reprinted, retaining its place in the order of third reading
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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04697-06-9
S. 3227--A 2
made available to the public upon request, provided that nothing 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.
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 help- ing to meet the credit needs of local communities
Purpose or general idea of bill
The purpose of this bill is to garner better information when the Bank- ing Department makes a periodic assessment of a bank's record in meeting the requirements of the Community Reinvestment Act (CRA).
Summary of provisions
This bill amends section 28-b(3) (a) of the banking law to require a bank's CRA evaluation to include a written discussion of their perform- ance record on each of the 12 assessment factors listed in the Community Reinvestment Act.
Difference between original and amended version (if applicable)
The amended bill clarifies how the written record of performance is done.
Justification
The lack of detail in the CRA assessments results in assessments that are uninformative and of no help to community leaders and others seeking to work with banks to increase the bank's local community lending and overall social responsiveness.
Prior legislative history
2015-17: S.6236 REFERRED TO BANKS 2015: A.3385 referred to banks 2016: A.3385 advanced to third reading 2017-18: S.2461 REFERRED TO BANKS 2017-18: A.1921 ordered to third reading
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.