Proposed new regulation on how banks serve minority and women-owned businesses


(NEWS10) – The New York State Department of Financial Services (DFS) is proposing new practices to assess how well New York State-regulated banks are serving their communities. The proposal will allow DFS to assess the extent of equitable access to credit for minorities, including low and moderate income neighborhoods and minority and women owned businesses.

According to the DFS, a former Industry letter issued was sent to alert New York banking institutions that it would make changes to the New York State Community Reinvestment Act amendment in reviewing data processed by banks. The regulations proposed by the DFS aim to ensure that the records of banking institutions evolve to better serve their communities, protecting them from redlining and fair loan violations.

“People of color and minority and women-owned businesses have historically struggled to access credit, and banking institutions play a critical role in underserved communities,” said Acting Superintendent of Financial Services , Adrienne Harris. “This proposed amendment will ensure that DFS has the necessary data”

The proposed provisions would regulate the details of how institutions should collect and submit necessary data to DFS. The DFS says banks will be required to ask if a business applying for a loan or credit is minority or female owned. Institutions will submit details of requests, such as date, type of credit requested and whether the request was approved or denied, DFS said.

The DFS says the proposed settlement is subject to a 60-day comment period followed by publication in the state registry. The Department of Financial Services will then review all comments received and issue a revised proposal or notice to adopt the final rule.

Discover the proposal here:

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