News

CDBA | Tuesday, May 4, 2021

CDBA and 9 other banking trades last week sent a letter to Acting Comptroller Blake Paulson supporting his efforts to add more objectivity and transparency to the Community Reinvestment Act (CRA) framework while also asking that he formally withdraw the June 2020 OCC Rule or delay its January 2023 compliance date. 

LA Times/Yahoo News | Saturday, May 1, 2021

Through the CARES Act, Congress ordered the Small Business Administration and the Treasury Department to issue guidance to lenders to ensure that the loan program "prioritizes small business concerns and entities in underserved and rural markets." Yet a Reveal analysis of more than 5 million PPP loans found widespread racial disparities in how those loans were distributed. In the vast majority of metro areas with a population of 1 million or more, the rate of lending to majority-white neighborhoods was higher than the rates for any neighborhoods with Latino, Black or Asian majorities.

Banking Dive | Friday, April 30, 2021

Quontic, a bank headquartered in New York City, refers to itself as an "adaptive digital bank." Ever since CEO Steven Schnall purchased the former Golden First Bank in 2009, the entrepreneur and former mortgage banker has been molding the bank to reflect his vision. "Part of the thesis when I bought the bank was that brick-and-mortar retail bank branches were ultimately going to die out, and people, consumers in particular, would want to bank online," he said. The bank, a certified community development financial institution (CDFI), started off with a focus on nonqualified mortgage lending, Schnall said.

Federal Reserve Bank of Richmond | Thursday, April 29, 2021

The Federal Reserve will conduct a national survey of Community Development Financial Institutions (CDFIs) from March 22-April 23. Participating CDFIs will be asked questions about their capitalization, capacity and the impact of COVID-19 on their organizations, clients and communities. The Federal Reserve Board of Governors, Federal Reserve Banks and the CDFI Fund intend to use the survey data to inform research and policymaking. The survey data will also provide important benchmark information on how CDFIs are faring in the COVID-19 crisis and how they are serving low-income and minority populations. Finally, responses will be used to update a national CDFI directory for business, government, community leaders, investors and policymakers.

Consumer Reports | Wednesday, April 28, 2021

The current movement for racial reconciliation has raised awareness of the centuries-long wealth gap in America between whites and people of color—and of the role Black-owned banks can play to bridge it. Even if you don’t have a team of money managers or hundreds of millions to shift to Black-owned institutions, you can still start an account with a bank dedicated to investing in underserved communities. Banks mentioned include Carver Federal Savings Bank, City First Bank, First Independence Bank, and OneUnited Bank. 

Crain's New York | Monday, April 26, 2021

Citigroup Inc. said it will invest in digital mortgage offerings as part of its pledge to improve homeownership rates among communities of color. The push to digital comes as Citigroup said the rate of applications and originations it processed for Black and Hispanic consumers dropped last year, even as it increased for Asian homeowners. In response, the firm is also still planning to expand its community lending team and its network of correspondent lenders, it said. Citigroup has pledged $100 million to support minority deposit institutions in the U.S., which have seen their numbers dwindling in recent years. The firm’s already allocated almost half of that commitment to banks including Broadway Financial Corp., Mechanics & Farmers Bank and Optus Bank.

KHTS | Thursday, April 22, 2021

Valley Industry Association (VIA) has partnered with Mission Valley Bank and the Santa Clarita Non-Profit Leaders Network to form a proposal that has been sent to Congressman Mike Garcia (R-Santa Clarita) that would provide funds to ease debt for eligible businesses in return for service to better the community. If approved, the proposal would make funding available to eligible Santa Clarita Valley businesses in crisis. These businesses are expected to maintain a clean criminal record, provide service through pre-approved organizations and programs, and maintain their presence in the Santa Clarita Valley for the foreseeable future, according to the document sent to Garcia. In the aftermath of the COVID-19 pandemic, many Santa Clarita small businesses have been left with consequential amounts of debt, with few options on how to survive and bounce back.

American Banker | Tuesday, April 13, 2021

Wells Fargo has made a new round of investments in Black-owned banks. The San Francisco company said it has invested in the $52 million-asset Carver State in Savannah, Ga.; the $572 million-asset Citizens Trust in Atlanta; the $287 million-asset First Independence in Detroit; the $765 million-asset Liberty in New Orleans; and the $183 million-asset Unity in Houston.

Forbes | Tuesday, April 13, 2021

For the third year running, Forbes has partnered with market research firm Statista to produce our list of the World's Best Banks. Instead of gauging the balance sheets and P&L statements, as Forbes does for its ranking of the 100 largest publicly-traded U.S. banks published annually, Statista surveyed more than 43,000 customers around the globe for their opinions on their current and former banking relationships. Banks were rated on general satisfaction and key attributes like trust, fees, digital services and financial advice. BankPlus is ranked 24th in the United States. 

The Star Tribune | Sunday, April 11, 2021

Sunrise Banks' CEO David Reiling, already leading what aspires to be "The World's Most Socially Responsible Bank," is pursuing that vision on a larger platform as the new chairman of the Global Alliance for Banking on Values (GABV). Reiling was named the organization's board chairman as Sunrise Banks hosted the 13th-annual meeting of the GABV. The alliance of 66 international banks and financial cooperatives works to build sustainable, economic, social and environmental development. The meeting took place as a virtual event over two days in March.

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