WASHINGTON — Comptroller of the Currency Thomas Curry on Wednesday expressed support for community development financial institutions, arguing they were an important part of the industry, even as the Trump administration is seeking to cut all government funding for them.
Though Curry did not refer to the administration's budget plan, he spoke out on the need for CDFI banks.
“Our nation and economy are stronger when [Minority Depository Institutions] and CDFI banks are a healthy, vibrant part of our financial services industry,” Curry said in prepared remarks for a conference in Los Angeles honoring such institutions.
“Diversity is critical in the ability of the banking sector to adapt to the needs of a diverse nation," Curry said. "A one-size-fits-all approach will not produce the kinds of innovation and responsiveness to customer needs that are necessary for our efforts to be successful.”
The Trump administration first suggested cutting funding for CDFIs in its budget proposal released last month. The program was also included in a spreadsheet sent to Hill appropriations committees last week, listing specific budget cuts the administration wishes to make. It estimated that eliminating government funding for the CDFIs would save $210 million.
Curry's term expires Sunday, but he is expected to stay on until a successor is confirmed. During his speech, he expressed hope about the program.
“I am optimistic about the future of MDIs and CDFIs,” Curry said.
Many legal experts think the Supreme Court will rule in favor of the Consumer Financial Protection Bureau in a case challenging its funding. Such a ruling would unleash a flurry of litigation that has been on hold pending the outcome of the constitutional challenge.
Lawmakers including one of the original sponsors of the Corporate Transparency Act have filed an amicus brief in the appeal against an Alabama court ruling that the law is unconstitutional, which would throw into question Treasury's newly-established beneficial ownership structure.
The Connecticut bank —a regional traditionally regarded as a cautious lender — said nonperforming loans and leases rose 53% year-over-year. The uptick was in mostly the commercial-and-industrial loan space, although there was one nonperforming commercial real estate loan, executives said.
The two regional banks are anticipating that borrower demand will increase in the back half of the year. High interest rates and economic uncertainty have been muting the appetite for borrowing.
In a letter to Treasury Secretary Janet Yellen last week, the Massachusetts senator highlighted the growing use of cryptocurrencies by malicious organizations abroad and underscored the need for anti-money-laundering and counterterrorism provisions in future proposals.