Rep. Jake Auchincloss' Financial Services Bill Passes House
Congressman Jake Auchincloss’ Promoting New and Diverse Depository Institutions Act has passed the House of Representatives as part of the Financial Services Committee’s Racial Equity, Inclusion, and Economic Justice Act.
Auchincloss’ bill directs banking regulators to work together to address the challenges that new banks face when applying for a bank charter. The bill specifically asks for a strategic plan that takes into consideration the challenges faced by new financial institutions, including minority depository institutions (MDIs) and community development financial institutions (CDFIs).
“Consumers should have access to affordable banking services, which requires competition in the market,” Auchincloss said on the House floor. "Over the last several decades, there has been consolidation among banks and credit unions. This has effectively limited the products available to consumers and artificially driven up costs while closing banking branches for people who already did not have many choices.”
"The Financial Services Racial Equity, Inclusion, Economic Justice Act includes my bipartisan bill, the Promoting New and Diverse Depository Institutions Act,” he continued. "My bill will help new banks, and in doing so, it will expand access to affordable services for unbanked communities."
According to the Federal Reserve, only seven new banks were formed from 2009 to 2013. This 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
Source:
Annie Sandoli