BILL NUMBER: S812
SPONSOR: SANDERS
 
TITLE OF BILL:
An act to amend the banking law, in relation to including establishing a
branch in a banking development district as a factor indicating that a
banking institution is helping to meet the credit needs of its entire
community for purposes of assessing such banking institution's perform-
ance; and to repeal certain provisions of such law relating thereto
 
PURPOSE:
This chapter amendment clarifies that the Department of Financial
Services may consider the participation in a banking development
district for the purposes of assessing an institution's performance in
meeting the credit needs of its community.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section one amends the banking law to state that the Department of
Financial Services (DFS) may consider participation in a Banking Devel-
opment District during a bank's Community Investment Act examination.
Section two repeals the underlying chapter that would have required
consideration of Banking Development District participation for every
bank examination.
Section three includes the effective date.
 
JUSTIFICATION:
This bill amends L.2024 c.656 to specify that the Department of Finan-
cial Services may rather than must consider participation in a Banking
Development District in a bank's performance evaluation. The optionality
reflects that not all banks may be eligible to participate in a Banking
Development District. Banks that participate in the Banking Development
District program will be rewarded for meeting the credit needs of un and
under-banked communities, but banks that do not participate will not be
penalized on their evaluations.
This bill is a negotiated change to the underlying chapter.
 
LEGISLATIVE HISTORY:
This bill amends Chapter 658 of the Laws of 2024. S.6648 and A.6090
passed the Senate and Assembly in May 2024.
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect on the same date and in the same manner as
chapter 658 of the laws of 2024 amending the banking law relating to
including participation in a banking development district as a factor
when assessing a banking institution's record of performance, as
proposed in legislative bills numbers 8.6648 and A.6090, takes effect.

Statutes affected:
S812: 28-b banking law, 28-b(3) banking law