FDIC’s Gruenberg speaks on FDIC’s Economic Inclusion Strategy
Written by: Rob Ellis, Senior Compliance Consultant
On April 4, Federal Deposit Insurance Corp. Chairman, Martin J. Gruenberg, delivered remarks at the National Community Reinvestment Coalition on the FDIC’s economic inclusion strategy. The speech highlighted the FDIC’s commitment to economic inclusion, efforts to understand the size and characteristics of the unbanked market, past FDIC economic inclusion efforts, and announced a new economic inclusion strategic plan.
Chairman Gruenberg addressed the FDIC’s new economic inclusion strategic plan to guide efforts to expand and support customers’ participation in the banking system. Chairman Gruenberg noted the small dollar loan programs being developed by some banks, which typically provide established accountholders with the opportunity to borrow small amounts of money at affordable rates and to repay them over a reasonable timeframe. According to Chairman Gruenberg, the FDIC’s new plan seeks to help households achieve financial stability through the establishment of positive credit histories and the use of consumer credit from banks along with insured savings accounts.
Chairman Gruenberg noted the biggest change to the plan is the call for the FDIC to take steps to encourage bank lending, investments, and services that support strong and healthy communities, including low and moderate income neighborhoods and other underserved communities. This would include community development lending and related investments with a broad range of objectives, including affordable housing, improved employment opportunities, and enhancing the resilience of communities to growing risks arising from climate change. While the FDIC has long sought to support banks’ community development efforts, the connection to its economic inclusion plan is new.
Chairman Gruenberg’s speech can be found at:
Please don’t hesitate to reach out to SCA to discuss how we can assist and support you in your Economic Inclusion and Affordable Housing Initiatives. Please contact our Director, Bill Dolan, at WDolan@scapartnering.com or by phone at (617) 694-2617 and schedule a time to speak with us today.
