Today New York State Comptroller Thomas P. DiNapoli, State Sen. James Sanders Jr. and State Assemblymember Khaleel M. Anderson held a press conference in support of legislation that would expand lending in underserved communities and help stimulate economic development.
The two bills were developed by DiNapoli, with the assistance of Sanders, chairman of the Senate Committee on Banks, will make it easier for community and minority-owned banks to access state deposits that help provide essential banking services and increase financing for small businesses and homeowners.
“Supporting community and minority-owned banks and credit unions puts state funds to work in neighborhoods that have historically been overlooked,” said DiNapoli. “These funds will help expand financial services, increase access to capital and build wealth through homeownership, entrepreneurship and job growth. It is a win-win for the state and our local communities.”
“After we discovered how the state was not maximizing the participation of all communities in economic development, we knew we had to act,” said Sanders. “These reforms ensure that public dollars are not just sitting on the sidelines, but actively working in the neighborhoods that need them most. By modernizing our deposit programs and removing outdated barriers, we are empowering community banks and minority‑owned financial institutions to expand lending, support small businesses, and help families build wealth. This is how we create real, lasting opportunity – by making sure every community has access to the financial tools that drive growth.”
“I want to thank State Comptroller DiNapoli, Senator Sanders and Assembly Member Vanel, for joining me in this united push to make banking and financing more accessible to underbanked communities across the state, specifically in my district of Southeast Queens," said Anderson. “The modernization and flexibility that these bills provide will allow community banks and minority deposit institutions to serve the public more efficiently, and to ultimately support the underserved communities that the BDD program and CBDP were designed to help.”
The first bill (S.8357/A.9574), authored by DiNapoli and sponsored by Sanders and Anderson, would reduce a barrier to participation in the Banking Development District (BDD) Program, which places public deposits in financial institutions serving underserved communities. The bill would allow participating banks to use reciprocal deposits to meet collateral requirements, allowing state deposits to be insured through FDIC-backed deposit placement networks, instead of requiring traditional collateral, freeing up more capital for lending.
The second bill (S.8406/A.9573), authored by Comptroller DiNapoli and sponsored by Sanders and State Assemblymember Clyde Vanel, would raise the Community Bank Deposit Program (CBDP) cap from $20 million to $30 million, expanding participating banks’ ability to support mortgages, small businesses, farms and local development.
The BDD program is administered by the Department of Financial Services (DFS) to encourage participation. DiNapoli’s office makes public deposits available up to $35 million to banks and credit unions to open or maintain a bank branch. DiNapoli has awarded deposits totaling approximately $505 million to 13 banking institutions that have opened or maintained branches in DFS-designated BDDs across New York State.
Banking Development District Program
*Indicates Minority Owned Institution
Banking Development District | City / Branch | State Deposit Amount |
Heritage Financial Credit Union | Middletown (Poughkeepsie) | $35,000,000 |
Hudson Valley Credit Union | Poughkeepsie (Green Island, Neversink and Denning) | $20,000,000 |
Lyons National Bank | Lyons (Jordan) | $10,000,000 |
Northfield Bank | Staten Island (Rosebank/Stapleton) | $10,000,000 |
Ponce Bank* | Bronx (District 9 Bronx) | $35,000,000 |
Popular Bank* | New York (District 1 Bronx, District 11 116th St., District 3 Lower East Side, District 6 East Tremont, District 7 Sunset Park, Brooklyn/Kings) | $175,000,000 |
Ridgewood Savings Bank | Ridgewood (Clinton Hill, Van Cortlandt Village, Williamsbridge) | $30,000,000 |
Savannah Bank | Savannah (Mentz) | $10,000,000 |
Seneca Savings | Baldwinsville (Bridgeport) | $10,000,000 |
Spring Bank | Bronx (Community District 4, Community District 6- Red I) | $20,000,000 |
Wallkill Valley Federal Savings & Loan | Wallkill (Maybrook) | $10,000,000 |
Flagstar Bank / NY Community Bank | Westbury (Brentwood, Corona Heights, Wyandanch) | $105,000,000 |
Sidney Federal Credit Union | Sidney (Morris/Butternut Valley | $35,000,000 |
Total |
| $505,000,000 |
The CBDP offers public funds to banks to use to stimulate local economic development. Tens of millions have been awarded through the program, but there are currently no minority owned banks participating. DiNapoli, state legislators and supporters of the legislation would like to see this change.
Community Bank Deposit Program
Community Bank | City | State Deposit Amount |
Carthage Savings Bank | Carthage | $20,000,000 |
Rochester | $20,000,000 | |
Solvay | $20,000,000 | |
Ithaca | $20,000,000 | |
Total |
| $80,000,000 |
Legislation
Banking Programs
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