The new law, which is modeled on a similar effort in the United Kingdom, aims to lure financial firms to the desert. It has drawn support from business organizations but opposition from consumer groups — a dynamic that is likely to be replayed in other states.
Clearinghouse CDFI will use funds from the $2 million investment to support affordable-housing and economic development projects in communities and Native American reservations in California, Nevada and Arizona.
Arizona, Nevada, Florida and North Carolina have lost more banks than other states, based on the percentage decline since 2010. Each has a unique set of reasons that goes beyond regulation and a dearth of de novo activity.