Community development bank

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Community development bank

In the United States

United States

The United States of America is a Federal government constitutional republic comprising U.S. state and a federal district. The country is situated mostly in central North America, where its Contiguous United States and Washington, D.C., the Capital districts and territories, lie between the Pacific Ocean and Atlantic Oceans, Borders of the U...
, Community development banks (CDBs) are bank

Bank

A bank is a financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money. It is an institution for receiving, keeping, and lending money....
s designed to serve residents and spur economic development in low- to moderate-income (LMI) geographical areas. When CDBs provide retail banking

Retail banking

Retail banking refers to banking in which banking institutions execute transactions directly with consumers, rather than corporations or other banks....
services, they usually target customers from "financially underserved" demographics. Community development banks can apply for formal certification as a Community Development Financial Institution (CDFI) from the Community Development Financial Institutions Fund

Community Development Financial Institutions Fund

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In the United States

United States

Bank

Retail banking

Community Development Financial Institutions Fund

Established through the Reigle Community Development and Regulatory Improvement Act of 1994, the Community Development Financial Institutions Fund, or CDFI Fund, is administered under the U.S....
of the U.S. Department of the Treasury.

Organizers wishing to start a new CDB in the United States can seek either a State or National bank charter. Like any national bank, all Federally chartered CDBs are regulated primarily by the Office of the Comptroller of the Currency

Office of the Comptroller of the Currency

The Office of the Comptroller of the Currency is a US federal agency established by the National Currency Act of 1863 and serves to charter, regulate, and supervise all national banks and the federal branches and agencies of foreign banks in the United States....
. According to the OCC Charter Licensing Manual, CDBs are required "to lend, invest, and provide services primarily to LMI individuals or communities in which it is chartered to conduct business." State-chartered Community Development Banks are subject to regulations, qualifications, and definitions that vary from state to state.

Some institutions use the terms CDB and community development financial institution

Community development financial institution

A Community Development Financial Institution, or CDFI, is a unique entity established to provide credit, financial services, and other services to underserved markets or populations....
, or CDFI, interchangeably.

Notable community development banks

The largest and oldest community development bank is ShoreBank

ShoreBank

ShoreBank is an American community development bank and green bank. It was founded in 1973 in Chicago. A pioneer in profitably lending to underserved urban and rural communities, ShoreBank has grown to $2.1 billion in assets and has affiliates across the United States and international consulting projects....
, headquartered in the South Shore neighborhood of Chicago

Chicago

Chicago is the largest city in the U.S. state of Illinois and the Midwestern United States, as well as the List of United States cities by population city in the United States with more than 2.8 million residents....
. Through its holding company , ShoreBank promotes its community development mission by operating CDBs and other affiliates in certain U.S. cities.

The Grameen Bank

Grameen Bank

The Grameen Bank is a microfinance organization and community development bank started in Bangladesh that makes small loans to the impoverished without requiring collateral ....
of Bangladesh

Bangladesh

, officially the People's Republic of Bangladesh is a country in South Asia. It is bordered by India on all sides except for a small border with Burma to the far southeast and by the Bay of Bengal to the south....
is also usually classified as a community development bank. It was founded by Muhammad Yunus

Muhammad Yunus

Muhammad Yunus is a Bangladeshi banker and economist. He previously was a professor of economics where he developed the concept of microcredit....
with consultation from ShoreBank. In 2006, the Grameen Bank and its founder were awarded the Nobel Prize

Nobel Prize

The Nobel Prize , established in the 1895 will of Swedish chemist Alfred Nobel; it was first awarded in Nobel Prize in Physics, Nobel Prize in Chemistry, Nobel Prize in Physiology or Medicine, Nobel Prize in Literature, and Nobel Peace Prize in 1901....
.

Other CDBs include:

in Portland, OR
in New York, NY
in Kansas City, MO
in Washington, D.C.
Washington, D.C.

Washington, D.C. , formally the District of Columbia and commonly referred to as Washington, the District, or simply D.C., is the Capital of the United States, founded on July 16, 1790....
in New Orleans, LA
in Jackson, MS
in New Orleans, LA
in Louisville, KY
Louisville, Kentucky

Louisville is Kentucky's largest city and county seat of Jefferson County, Kentucky. The city's estimated population as of 2006 is listed as 557,789, with a population of 1,233,733 in the Louisville-Jefferson County, KY-IN Metropolitan Statistical Area....
in San Diego, CA
in Arkadelphia, AR
in St. Paul, MN