LOS ANGELES – The Los Angeles City Council last week approved a plan to create so-called Banking Development Districts that will provide credit unions and banks with guaranteed municipal deposits and council district discretionary fund deposits, property tax breaks and fast-track land use approval for institutions that open branches within a district.
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The plan is modeled after an initiative in New York City which has encouraged the opening of credit union and bank branches in underserved neighborhoods.
Los Angeles officials estimated more than 300,000 city residents lack basic checking and savings accounts.
