What's happening
This bill adds establishing a branch in a banking development district as a factor in evaluating a bank's community credit support.
Why it matters
Banks that open branches in designated banking development districts will receive explicit recognition for supporting community credit needs. , which could incentivize more banks to serve areas that are traditionally underserved or economically distressed.
The bill clarifies and streamlines how participation in these districts is factored into regulatory evaluations. , potentially making it easier for banks to understand and respond to community reinvestment expectations.
By emphasizing physical branch establishment (not just other forms of participation), the legislation aims to promote direct access to financial services in targeted neighborhoods. , which can have positive ripple effects for local economic development, financial inclusion, and small business growth.
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Who cares
Headline styles
Credit for Local Bank Branches
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Substituted by A421
- Ordered to third reading cal.86
- Referred to rules
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.
Credit for Bank Branches
Signed by Governor · Sponsor Khaleel Anderson
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
812
2025-2026 Regular Sessions
IN SENATE (Prefiled)
January 8, 2025
Introduced by Sen. SANDERS -- read twice and ordered printed, and when printed to be committed to the Committee on Rules
AN ACT to amend the banking law, in relation to including establishing a branch in a banking development district as a factor indicating that a banking institution is helping to meet the credit needs of its entire community for purposes of assessing such banking institution's performance; and to repeal certain provisions of such law relating thereto
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subparagraph 12 of paragraph (a) of subdivision 3 of section 28-b of the banking law, as amended by chapter 264 of the laws of 2019, is amended to read as follows:
(12) Other factors that, in the judgment of the superintendent, reasonably bear upon the extent to which a banking institution is helping to meet the credit needs of its entire community, including, without limitation, the banking institution's participation in credit counseling services or participation in a banking development district established pursuant to section ninety-six-d of this chapter by establishing a branch in such district.
§ 2. Subparagraph 10-a of paragraph (a) of subdivision 3 of section 28-b of the banking law as added by a chapter of the laws of 2024 amending the banking law relating to including participation in a banking development district as a factor when assessing a banking institution's record of performance, as proposed in legislative bills numbers S. 6648 and A. 6090, is REPEALED.
§ 3. This act shall take effect on the same date and in the same manner as a chapter of the laws of 2024 amending the banking law relating to including participation in a banking development district as a factor when assessing a banking institution's record of performance, as proposed in legislative bills numbers S. 6648 and A. 6090, takes effect.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02856-01-5
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 including establishing a branch in a banking development district as a factor indicating that a banking institution is helping to meet the credit needs of its entire community for purposes of assessing such banking institution's perform- ance; and to repeal certain provisions of such law relating thereto
Purpose
This chapter amendment clarifies that the Department of Financial Services may consider the participation in a banking development district for the purposes of assessing an institution's performance in meeting the credit needs of its community.
Summary of specific provisions
Section one amends the banking law to state that the Department of Financial Services (DFS) may consider participation in a Banking Devel- opment District during a bank's Community Investment Act examination.
Section two repeals the underlying chapter that would have required consideration of Banking Development District participation for every bank examination.
Section three includes the effective date.
Justification
This bill amends L.2024 c.656 to specify that the Department of Finan- cial Services may rather than must consider participation in a Banking Development District in a bank's performance evaluation. The optionality reflects that not all banks may be eligible to participate in a Banking Development District. Banks that participate in the Banking Development District program will be rewarded for meeting the credit needs of un and under-banked communities, but banks that do not participate will not be penalized on their evaluations.
This bill is a negotiated change to the underlying chapter.
Legislative history
This bill amends Chapter 658 of the Laws of 2024. S.6648 and A.6090 passed the Senate and Assembly in May 2024.
Fiscal implications
To be determined.
Effective date
This act shall take effect on the same date and in the same manner as chapter 658 of the laws of 2024 amending the banking law relating to including participation in a banking development district as a factor when assessing a banking institution's record of performance, as proposed in legislative bills numbers 8.6648 and A.6090, takes effect.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.