TRENTON – Legislation to encourage banking institutions to open branches in underserved communities was approved recently by the Assembly.
This measure (A-1458) would create a Banking Development District Program within the state Department of Banking and Insurance to help licensed financial institutions locate new branches in underserved communities.
To encourage banks to take part in the program, the bill would allow the state Treasurer to deposit public funds in a participating financial institution. The governing body of a municipality in which a banking development district has been created also would have the option of using the bank as a depository.
The legislation mirrors a similar program in New York state.
The bill was approved 75-3 and now goes to the Senate for more consideration.
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