Bill Developed with Senator Sanders and Assemblymember Anderson Headed to Governor’s Desk
Legislation initiated by New York State Comptroller Thomas P. DiNapoli to help expand banking services in underserved communities passed in the New York State Senate and Assembly. The proposal was developed by the State Comptroller’s office in collaboration with the legislature and the banking community.
The bill (S.8357/A.9574), developed by DiNapoli with assistance from sponsors Senator James Sanders Jr. and Assemblymember Khaleel Anderson, would help more community and minority owned banks access state deposits by reducing barriers to participation in the Banking Development District (BDD) Program. The legislation allows eligible participating financial institutions to use reciprocal deposits to satisfy collateral requirements for state deposits. The change would free up additional capital for essential banking services, support mortgages, and help small businesses in underserved communities.
“This legislation modernizes the Banking Development District program and strengthens the ability of community banks and minority depository institutions to invest in underserved communities,” said DiNapoli. “I thank Senator Sanders and Assemblymember Anderson for their leadership, as well as Ponce Bank and the banking groups that supported this legislation, and I encourage Governor Hochul to sign it into law.”
“This legislation is a major step forward in expanding economic opportunity for communities that have been historically underserved by our financial system,” said Sanders. “By modernizing the Banking Development District Program, we are giving community banks and minority‑owned financial institutions the tools they need to grow, lend, and invest directly in neighborhoods that have too often been overlooked. Allowing reciprocal deposits will free up capital for mortgages, small business loans, and essential banking services — the very lifelines that help families build stability and wealth. I thank State Comptroller DiNapoli and Assemblymember Anderson for their partnership and leadership. Together, we are ensuring that every community in New York has access to fair, reliable, and community‑centered banking.”
"If a program is meant to uplift underserved communities, it can only do so as long as it remains easy to participate in," said Anderson. "The bill my colleagues and I passed accomplishes this by allowing community banks in the Banking Development District program to use more of their capital to support small business lending and promote local economic activity in the neighborhoods that need it the most. I thank State Comptroller DiNapoli, State Senator Sanders, Jr., and all of the advocates who joined us in getting this bill over the finish line and onto the Governor's desk."
The BDD program was created by the state Legislature to support the establishment of bank and credit union branches across the state where there is a demonstrated need for banking services and is administered by the Department of Financial Services (DFS). DiNapoli’s office makes public deposits available up to $35 million to banks and credit unions to open or maintain a bank branch in underserved communities.
As of June 2026, the State Comptroller’s office has deposited approximately $540 million in 13 banking institutions that have opened or maintained branches in BDDs across New York state.
Legislation
Banking Programs
No comments:
Post a Comment