Assembly Banks Committee Chairman Kenneth Zebrowski, D-Westchester-Rockland, introduced a bill that would permit credit unions to participate in the state Banking Development District Program.
The New York Credit Union Association strongly supports the legislation.
The BDD Program was created in 1997 to encourage financial institutions to establish branches in economically-distressed communities throughout New York where there is a demonstrated need for banking services. Banks and trust companies have continually declined to participate in the program, yet credit unions—which are well-positioned to serve these communities—have remained unable to participate.
The legislation would amend the state banking law to allow credit unions to participate in the BDD Program.
Zebrowski’s bill passed the Assembly last year with bipartisan support.
At the time, Association President/CEO William J. Mellin said: “The Assembly’s passage of this bill is an encouraging step toward seeing this common sense measure signed into law. On behalf of the state’s credit unions, I’d like to thank all of the members of the Assembly who voted in favor of this important legislation. In particular, Chairman Zebrowski should be commended for carrying this bill and the tremendous leadership he displayed in overseeing its passage.”
The Senate version of the bill moved late in the session, but it eventually stalled in the Rules Committee.
The Association is working closely with lawmakers in the Senate to advance the bill in the chamber this year.