-Specialized program established by Comptroller Thompson and City Officials has helped provide banking services to underserved neighborhoods across the City-

New York City Comptroller William C. Thompson, Jr. and Finance Commissioner Martha Stark today announced that New York City’s Banking Development District (BDD) program has reached $200 million in deposits to support bank branches in underserved neighborhoods citywide.

Thompson and Stark made the announcement after Amalgamated Bank received a $10 million deposit through the BDD program following the opening of its branch in Sunset Park, Brooklyn.  The deposit brings the program’s total to $200 million, doubling the City’s initial goal and commitment of $100 million. 

“The Banking Development District program has been successful in bringing financial stability to dozens of neighborhoods throughout the City,” Thompson said.  “I am extremely proud to be a part of this program and look forward to its continued success.”

“This $200 million milestone underscores Mayor Bloomberg's and the City's commitment to ensuring that all neighborhoods have banking services that they can rely on,” said Finance Commissioner Martha Stark.

Amalgamated Bank’s office in Sunset Park is the twenty-third BDD branch to receive City deposits since the creation of the New York City Banking Development District program in 2003.  At its inception, the City made a commitment to deposit $100 million through the program when the Comptroller, Mayor, and Department of Finance Commissioner authorized the deposit of City funds into bank branches in areas of the City designated as underserved.

A large number of the branches are located within blocks of New York City Housing Authority developments, affording many low-income residents the availability of traditional banking services in walking distance of their homes.

Added Thompson: “By leveraging the City’s funds in a responsible manner to help establish community banking services, we are increasing the possibility of economic stimulation within these neighborhoods.”

In order to be considered for a BDD, a bank must apply to the New York State Banking Department to have a specific under-banked area designated as a Banking Development District. The bank then submits an application to regulators to open a branch within the BDD, ensuring that the submitting bank meets regulatory banking standards.

Once a BDD designation has been approved, the applicant bank can request a deposit from the New York City Banking Commission, consisting of the Mayor, Comptroller and Finance Commissioner or their designees.  If all supporting documentation is in place and the bank pledges acceptable collateral with a custodial bank, the Comptroller’s Office and Finance Department wire deposits to the new branch for as much as $10 million to help the institution establish itself within the community.

“This is a great resource for our communities to help establish a financial identity,” said Thompson.  “As more banks are opened throughout the City as a result of the BDD program, a new fiscal landscape will emerge in these traditionally underserved areas.”

 
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