June 16th, 2016 by WCBC Radio
Congressman John K. Delaney (MD-6) has filed legislation to give more Americans access to the basic financial services they need to save and spend their earnings and start a new business. The Equal Access to Banking Act is designed to help the over 68 million Americans who are unbanked or underbanked, a low-income population that must rely on higher-cost alternatives, costing them thousands of dollars a year just to spend the money they’ve earned. Studies indicate that roughly half of Latino and African-American households are disconnected from the financial system, limiting economic opportunity and job growth in many communities.
The Equal Access to Banking Act is part of Delaney’s Consumer Protection and Community Investment Agenda.
“Too many Americans don’t have access to a financial system that works for them and this legislation offers a new solution,” said Congressman Delaney. “Access to banking matters – for many Americans it’s difficult and expensive just to access their own money, creating a daily drain on people’s wealth and limiting their ability to save for the future, provide for their family or start their own business. Targeted philanthropic non-profit banks can bridge the financial gap and save consumers thousands of dollars a year, which is why it’s so important that we update FDIC standards and allow more non-profit focused innovation that expands economic opportunity in the places that need it the most.”
Delaney’s legislation updates Federal Deposit Insurance Corporation (FDIC) standards to allow philanthropic non-profit banks to receive deposit insurance, a necessary step to allow them to serve consumers and bring access to checking accounts, credit and small business loans to underserved communities. Because they are not allowed to make a profit, these targeted philanthropic non-profit banks will be able to offer customers lower-fee financial products.
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