Testimony Counters Banks

Register now

Amy Kramer, vice president of Governmental Affairs for the New York State Credit Union League (NYSCUL), testified at an open hearing held by the Assembly Banks Committee in New York City.

The purpose of the hearing was to evaluate the current Banking Development District Program and to gather information from hearing participants with regard to the recently proposed legislation, according to the NYSCUL.

Kramer provided the committee with an overview of why credit unions support the enhanced application and reporting process included in the newly proposed legislation. She also spoke about how credit unions are uniquely positioned to help the program achieve its goals, while providing New York consumers the option of affordable financial services through their credit union. Joining Kramer at the hearing was the League's SVP and General Counsel Michael Lanotte.

The Banking Development District Program was created in 1997 to enhance financial services in underserved areas. The program provides tax and investment incentives to draw banks into areas without adequate financial services.

According to the league, Kramer countered the banks' arguments that credit unions' tax-exempt status should keep them out of the program by testifying how credit unions are experts at serving low-income New Yorkers. She also emphasized that access to municipal deposits and the property tax benefits of the Banking Development Districts would give credit unions much needed resources to provide affordable services to more New Yorkers.

The NYSCUL strongly supports Assembly bill 166, sponsored by Assemblyman Ivan Lafayette (D-Metropolitan), which would authorize credit unions to participate in the Banking Development District Program.

The bill was reported out of the Assembly Ways and Means Committee during their May 26 meeting.

For reprint and licensing requests for this article, click here.