This measure creates a California Banking Development District program, a proven way to connect lower-income unbanked Californians with the financial products and services they need to enter the financial mainstream and begin to build savings and assets. It identifies specific “Banking Development Districts” where financial institutions will receive incentives such as state deposits to develop enhanced and expanded products and services for lower-income consumers.

The proposal encourages banks and credit unions to locate in underserved communities. It is promotes local economic development and is modeled after New York State’s successful Banking Development District program.

To learn more about Banking Development Districts, and how they can help California communities spur investment and California workers build savings and economic security, read our policy brief. Read our press release from the bill's introduction here.

A sample letter of support is attached at right under "Related Files."

Status: 
This bill was introduced December 6, 2010. It is a reintroduced version of AB 2581 from the 2010 session.