NE Florida Counts :: Promising Practices :: New York's Banking Development Districts

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An Effective Practice meets the following HCI criteria:

1. The program description includes at a minimum: the sponsoring organization, program goals, program implementation steps, and outcomes that have demonstrated program success and/or promise in achieving the program goal in one or more localities.

2. The results from an evaluation of the program include quantitative measures of improvement in outcome of interest (i.e. increase in voter registration, not just delivery of voter registration drive) and/ or the outcome measure is increased or improved compared to the baseline measurement or the control group but the difference is not statistically significant.

New York's Banking Development Districts

Ranking	Effective Practice
Description	In 1998, New York enacted legislation to authorize the establishment of banking development districts (BDDs) across the state. The program offers incentives for mainstream ﬁnancial institutions to locate in traditionally underserved communities. Incentives can include sales and property tax exemptions, real estate assistance, favorable Community Reinvestment Act consideration, job credits, and municipal deposits at below-market rates. The New York State Banking Department is responsible for approving and overseeing new BDD designations. To receive a BDD designation, banks need to partner with a local government entity and detail the programs and amenities they will bring to the community, such as extended hours of operation, multilingual staff, special products and services tailored to the community, workforce development programs, and ﬁnancial education programs and outreach.
Goal / Mission	The goal of the program is to increase access to ﬁnancial services for low-income families as well as stimulate economic development in distressed neighborhoods.
Results / Accomplishments	Currently, there are 24 BDDs. New York is the only state to have this type of program. According to the annual report, each BDD branch made an average of more than $6 million in loans and opened an average of 920 accounts in 2005. Most ﬁnancial institutions also provided ﬁnancial literacy training and introduced new services and products in 2005, including new automated teller machines, free application assistance for the federal Earned Income Tax Credit, and extended hours.
Categories	Economy / Investment & Personal Finance Economy / Economic Climate
Organization(s)	The New York State Banking Department
Source	Finance Project
Date of Publication	Dec 2006
Date of Implementation	1998
Location	State: New York
Primary Contact	New York State Banking Department One State Street New York, NY 10004-1417 (212) 709-3591 http://www.banking.state.ny.us./
For more details	http://www.financeproject.org/publications/Stra...
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