ALBANY, N.Y.–After failing to pass last year, the New York Public Banking Act has returned to the state legislature and it again has credit union support.
The bill, supported by Sen. James Sanders, would make it easier for public banks to operate in New York. Public banks are controlled by a government body rather than by private investors and do not offer retail products to consumers. They can also be institutional lenders — banks that other banks turn to for loans.
Credit unions across the state could benefit if the legislation is passed, according to Spectrum Local News.
Melissa Marquez, CEO of the 40-year-old Genesee Co-op Federal Credit Union of Rochester, told Capital Tonight that a public bank would make a great partner to assist the credit union with community investments.
‘Really Seeking a Partner’
“One of the reasons we are so invested in trying to get this legislation passed is that we are really seeking a partner to do financing on projects,” Marquez was quoted as saying. “There (are not) enough financing vehicles. No community lenders, no big banks are doing the kind of projects that we envision are needed, especially in minority neighborhoods and low-income neighborhoods.”
The economic development initiatives Marquez is referring to could be anything from an affordable housing tract to a venture that might support a local worker co-op, Capital Tonight reported.
“These are seen as higher risk. Typical mainstream lenders are not going to want to invest in something like that,” Marquez explained.
Sanders’ “New York Public Banking Act” currently sits in the Senate Banking Committee the report stated.
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