New York State Department of Banking Issues new report and recommendations for Banking Development Districts

May 4,2010

Enclosed please find a copy of 10 Years In: A Review of the Banking Development District Program. This report is a result of a year-long review of the BDD Program and outlines important changes being made to the program. In addition to programmatic changes, in the report you will see our key findings based on our survey of BDD branches and community organizations, and two public hearings that solicited testimonies from 16 financial institutions, 11 community organizations and seven public officials.

In 1999, the New York State Banking Department launched the BDD program to provide an incentive to banks to provide financial services that are appropriate for unbanked and underbanked communities. The establishment of new bank branches in these communities stimulates the opening of suitable bank accounts by community residents and provides better access to credit for both residents and small businesses. The program was designed to address the estimated 761,000 (9.8%) households in New York State that do not have a bank account of any kind (unbanked), and 1.5 million (19.3%) that have a bank account, but rely on other, more expensive types of financial institutions to meet their banking needs (underbanked).

In 2009, the 10th year of the BDD program’s operation the New York Banking Department undertook a thorough review of the program. The review was designed to identify the strengths and weaknesses of the program and to assist the Department in developing appropriate measures to build on strengths and eliminate (to the extent possible) identified weaknesses.

If you have any questions about the report, our findings, or our next steps, please contact Dianne Dixon, Deputy Superintendent of Banks, Consumer Services at Dianne.Dixon@banking.state.ny.us or (212) 709-3591.

Click the link below to view the PDF.
http://bedc.org/wp-content/uploads/2010/05/10-years-in-a-review-of-the-b...