Auchincloss Financial Services Bill to Help Expand Banking Access Proceeds to Senate
Thanks to the Office of Congressman Jake Auchincloss for contributing this news to Westwood Minute.
Washington, DC —Congressman Auchincloss’ Promoting New and Diverse Depository Institutions Act (H.R. 4590), passed the House of Representatives as a standalone bill with bipartisan support after having previously passed as part of a larger package. H.R. 4590 will now head to the Senate for consideration. Auchincloss’ bill directs banking regulators to work together to address the challenges that new depository institutions face when applying for a bank charter. The bill specifically asks for a strategic plan that takes into consideration the challenges faced by de novo financial institutions, including minority depository institutions (MDIs) and community development financial institutions (CDFIs).
Speaking on the House floor in support of the legislation, Auchincloss stated, “Our economy has not always worked for all communities equally…One way to address these issues is to ensure access to diverse and affordable financial services that can help individuals save money and help small businesses raise capital…My bill will help new banks, and in so doing, it will expand access to affordable services for unbanked communities. I believe this bill is a necessary step towards advancing economic equality in our country, and I ask your help to ensure that all Americans have access to affordable banking services regardless of their address.”
Starting and maintaining a new bank or credit union is a difficult process. According to the Federal Reserve, from 2009 to 2013 only seven new banks were formed. Based on the decreasing number of new banks, Congress must act to direct banking regulators to measure and mitigate the challenges new banks face. Such a study will inform future steps that Congress can take to expand competition and access for consumers.
The Promoting New and Diverse Depository Institutions Act has been endorsed by the Credit Union National Association; the Chamber of Commerce; American Bankers Association; Independent Community Bankers of America; Massachusetts Bankers Association; and the Financial Technology Association