It’s easy to get lost in the whirlwind of market trends, economic indicators, and global financial forecasts. But regardless of what you see in the news, US banks can lend a hand. So if you work at a bank, maybe it’s time to ask how does your bank help underserved communities. It all starts with community development corporations (CDCs.) Who gets help and who gives help include:
- Community Development Corporations
- State Member Banks
- Bank Holding Companies and Financial Holding Companies
Community Development Corporations
According to the Federal Reserve, “Community development investments are designed to create new opportunities–primarily related to affordable housing, small businesses, and jobs–that specifically benefit lower-income neighborhoods and populations.” Community development corporations like Inspiring You To Greatness – CDC is the type of program the Federal Reserve has mandated state member banks, bank holding companies, and financial holding companies to help.
State Member Banks
Suppose you work at a state member bank and are unsure how to ask the boss if your institution can help. Here’s what the Federal Reserve says, “State member banks are authorized under 12 USC 338a to make public welfare and community development investments under certain conditions, including limits on the aggregate amount of such investments that a bank may make.” Luckily the authorization to help is printed in black and white.
Bank Holding Companies and Financial Holding Companies
The Federal Reserve offers broad authority for bank and financial holding companies to impact their communities positively. Make a splash at your next institutional meeting when you mention “section 4 of the Bank Holding Company Act, 12 USC 1843.” If you work at a financial holding company, mention the “…post-transaction notice requirements of section 225.87 of Regulation Y,” when you want your financial holding company to lend a hand in the community.
Sometimes working in a bank can feel like there’s no room to impact your community positively. But when it’s time to ask ‘how does your bank help?’ you have an answer straight from the Federal Reserve. So make a splash in your community when you help out CDCs like Inspiring You to Greatness – CDC.