State Senate passes Banking Development District bill

New York State Capitol

The state Senate passed an important bill yesterday that would grant credit unions access to the state Banking Development District Program. The legislation was introduced by Sen. Velmanette Montgomery, D-Metropolitan. Passage of the legislation would include credit unions within the definition of a bank, trust company or national bank for the purpose of the BDD Program.

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 remain unable to participate.

As previously reported, the New York Credit Union Association strongly supports the legislation, A.3320 (Zebrowski)/S.727-A (Montgomery), and has encouraged all New York credit union advocates to contact their state lawmakers and urge them to support the legislation.

“Because of their unique structure and mission, New York’s credit unions are by their very nature well-positioned to participate in the Banking Development Districts Program – a vital program that other types of financial institutions have consistently declined to participate in,” said William J. Mellin, Association president/CEO. “Including credit unions in the BDD is a key victory for New York’s credit unions, which the Association believes are already well-positioned to serve the needs of the state’s underserved communities. Despite being the financial capital of the world, countless New Yorkers sadly lack basic access to the financial system. Thanks to this bill and the efforts of Sen. Velmanette Montgomery, Chairman James Sander, Jr., Deputy Leader Michael Gianaris and Leader Andrea Stewart-Cousins, New York is now one step closer to ensuring every consumer has a shot at a better financial future.”

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