Ensuring Diversity in Community Banking Act of 2019

Floor Speech

Mr. Speaker, I thank the gentleman from New York for introducing this bill. He has worked in good faith with Republican Members over the past year to reach a bipartisan solution on this important issue.

The Financial Services Committee has held several hearings over the past year on the state of minority depository institutions, or MDIs, and community development financial institutions, or CDFIs.

Both MDIs and CDFIs provide critical services and support to their communities. Unfortunately, the number of these institutions has been declining at an alarming rate.

Burdensome regulations and a lack of access to capital have caused many of these MDIs to either consolidate or be forced to shut their doors for good. It is simply too hard for these smaller institutions to remain viable in the current environment.

The bill we are considering today promotes policies and establishes programs to support MDIs and CDFIs and the customers and communities they serve.

Importantly, the bill seeks to promote engagement in the Department of the Treasury's mentor-protege program to encourage collaboration between MDIs and institutions that act as financial agents for the Federal Government.

The bill also directs each of the Federal banking regulators to establish MDI advisory councils to ensure MDI voices are heard without weakening or duplicating current efforts.

The bill also allows banks to be designated as an impact bank. This allows any bank that serves a majority of low-income borrowers to be considered as an option to hold government deposits. This program will bolster the ability of banks to serve their communities.

Finally, the bill streamlines the application reporting requirements to become and remain a CDFI.

I appreciate the gentleman from New York for his willingness to work with committee Republicans so that we can bring a strong bipartisan bill to the floor that supports communities in need.

Mr. Speaker, I urge my colleagues to support this bill, and I reserve the balance of my time.

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Mr. TIMMONS. Mr. Speaker, I urge my colleagues to support H.R. 5322, and I yield back the balance of my time.

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