Substitute Senate Bill No. 1398 seeks to enhance community reinvestment efforts by banks and credit unions in Connecticut, with a particular focus on supporting low and moderate-income neighborhoods, as well as minority-owned and women-owned businesses. The bill introduces new definitions, including "minority," "minority-owned business," and "women-owned business," which clarify the demographics targeted for support. It mandates that banks delineate their local communities and assessment areas to ensure inclusive credit offerings. Additionally, the assessment process for banks' performance in meeting community credit needs is revised, requiring evaluations based on compliance with the federal Community Reinvestment Act (CRA) and the inclusion of both public and confidential performance sections.

The bill also modifies the approval process for banking transactions, stipulating that the commissioner of banking must ensure compliance with CRA requirements before granting approvals. It emphasizes the need for banks to provide adequate services to all community members, particularly low-income, minority-owned, and women-owned businesses. Furthermore, the bill repeals and replaces certain sections of existing statutes to clarify definitions and obligations of community credit unions, expanding their focus on serving minority- and women-owned businesses. Overall, the bill aims to strengthen the regulatory framework governing banking transactions and community credit unions, promoting equitable access to financial services while preventing monopolistic practices in the banking sector.

Statutes affected:
Raised Bill:
BA Joint Favorable Substitute:
File No. 292: