Leading Firms Commit $35 Million, More Expected Soon
WASHINGTON, June 4, 2024
/PRNewswire/ -- The Community Development Bankers Association
(CDBA) and National Bankers Association (NBA) are proud to announce
the launch of the Advancing Communities Together (ACT) Deposit
Program. This innovative initiative is designed to channel vital
funding to banks serving low-income and minority communities while
also ensuring all deposits are eligible for FDIC insurance.
At launch, four major financial firms have deposited
$35 million in the program, with
additional deposits anticipated from a broad range of depositors,
including corporations, foundations, and universities.
"The ACT Deposit Program created a secure and efficient way for
community development banks to attract and retain large
institutional deposits," said Jeannine
Jacokes, Chief Executive Officer of CDBA, which represents
CDFI, MDI, and climate-focused banks. "The support from these firms
and future depositors will create a lasting positive impact in
underserved areas."
Nicole Elam, President and CEO of
the NBA, emphasized the program's benefits: "The ACT Deposit
Program offers a streamlined approach for providing essential
deposits to minority banks serving the underserved and communities
of color. This initiative empowers our members to facilitate
homeownership, business growth, and financial stability,
contributing to job creation and the overall vitality of
communities across America."
The ACT Deposit Program's four founding firms are Blackstone,
BNY Mellon, Warburg Pincus, and IntraFi.
Martin Brand, Head of North
America Private Equity at Blackstone, said: "Community banks play
an essential role in boosting economic growth and job creation
across the country. We're pleased to support this innovative
partnership to help expand access to capital in underserved markets
throughout the United
States."
"Empowering our clients and partners with solutions to advance a
more inclusive economy, and to enable their own sustainability
objectives is core to what we do," said Laide Majiyagbe, Global Head of Financing and
Liquidity at BNY Mellon. "We are proud to play a central role in
the ACT Deposit Program via our LiquidityDirect platform to connect
socially motivated investors and community banks to help fuel
growth for local communities across the country."
Steven Glenn, Managing Director,
Chief Financial Officer, Chief Operating Officer, Warburg Pincus,
said the ACT Deposit Program aligns with the firm's commitment to
growth investing. "We look for opportunities where our resources
can help organizations grow and make a positive change in the
communities they serve," Glenn said. "Providing access to reliable
financial solutions is an incredibly important service. We are
excited about the increased lending and financial inclusion
provided by the ACT Deposit Program and look forward to following
the program's impact and progress."
Key Benefits of the Program
The ACT Deposit Program simplifies the process for businesses,
nonprofits, community organizations, and high-net worth individuals
to place at least $5 million with a
community development financial institution (CDFI) or minority
depository institution (MDI) bank. Deposits made through the
program are distributed among the more than 70 participating CDFIs
and MDIs, amplifying the impact of each deposit.
The program is powered by IntraFi through its ICS service, which
includes 3,000 banks nationwide. This collaboration offers millions
of dollars in aggregate FDIC insurance.
Participating depositors can choose a CDFI or MDI as their
relationship bank, which will then allocate part of the deposit to
other participating banks. This ensures benefits are shared across
all banks in the program. Depositors can also choose to spread
their funds among all participating CDFIs and MDIs, with all
deposits eligible for FDIC insurance.
Why This Program Is Needed Now
CDFI and MDI banks need deposits to leverage the more than
$6 billion in capital they received
from the Treasury Department in 2022 as part of the Emergency
Capital Investment Program (ECIP), which aims to boost lending in
communities hit hard by the pandemic.
To date, 75 CDFIs and MDIs have joined the program. Deposits in
the program will yield near-market interest rates, and depositors
will receive regular reports on how their funds are being used to
support communities.
The ACT Deposit Program is open to any depositor looking to make
a positive impact through socially responsible investments in
underserved markets while ensuring their deposits are protected by
FDIC insurance.
For more information about the ACT Deposit Program, and a list
of its participating banks, please visit the program's website:
https://www.intrafi.com/act-deposit-program.
About CDBA
For over two decades, the Community
Development Bankers Association has led the community development
banking movement, advocating for financial inclusion, racial
equity, and economic opportunities in the nation's most
economically distressed areas. The CDBA and its member banks are
located in 26 states and Washington,
D.C., and are unwavering in their commitment to making
banking a force for good. For more information on the CDBA's
mission and initiatives, please visit www.cdbanks.org.
About NBA
Founded in 1927, the National Bankers Association is the voice
for the nation's minority depository institutions (MDIs), and the
only organization focused solely on the survival and strengthening
of MDIs. Its members include Black, Hispanic, Asian, Pacific
Islander, Native American, and women-owned and -operated banks
across the country, all working to help minority and low- and
moderate-income communities who are underserved by traditional
banks and financial service providers. MDIs are located in 32
states and territories. Learn more at www.nationalbankers.org
About Blackstone
Blackstone is the world's largest alternative asset manager. We
seek to deliver compelling returns for institutional and individual
investors by strengthening the companies in which we invest. Our
more than $1 trillion in assets under
management include global investment strategies focused on real
estate, private equity, infrastructure, life sciences, growth
equity, credit, real assets, secondaries, and hedge funds. Further
information is available at www.blackstone.com.
About BNY Mellon
BNY Mellon is a global financial
services company that helps make money work for the world –
managing it, moving it and keeping it safe. For 240 years we have
partnered alongside our clients, putting our expertise and
platforms to work to help them achieve their ambitions. Today we
help over 90% of Fortune 100 companies and nearly all the top 100
banks globally access the money they need. We support governments
in funding local projects and work with over 90% of the top 100
pension plans to safeguard investments for millions of individuals,
and so much more. As of March 31,
2024, we oversee $48.8
trillion in assets under custody and/or administration and
$2.0 trillion in assets under
management.
BNY Mellon is the corporate brand of The Bank of New York Mellon
Corporation (NYSE: BK). We are headquartered in New York City, employ over 50,000 people
globally, and have been named among Fortune's World's Most Admired
Companies and Fast Company's Best Workplaces for Innovators.
Additional information is available on www.bnymellon.com. Follow us
on LinkedIn or visit our Newsroom for the latest company news.
About Warburg Pincus
Warburg Pincus LLC is a
leading global growth investor. The firm has more than $81 billion in assets under management. The
firm's active portfolio of more than 250 companies is highly
diversified by stage, sector, and geography. Warburg Pincus
is an experienced partner to management teams seeking to
build durable companies with sustainable value. Since its founding
in 1966, Warburg Pincus has invested more than
$116 billion in over 1,000 companies
globally across its private equity, real estate, and capital
solutions strategies. The firm is headquartered in New York with offices in Amsterdam, Beijing, Berlin, Hong
Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San
Francisco, São Paulo, Shanghai, and Singapore. For more information please
visit www.warburgpincus.com. Follow us
on LinkedIn.
About IntraFi
A trusted partner chosen by more
than 3,000 financial services companies, IntraFi defines success
not by the volume of transactions we enable, but by the quality of
relationships we form. Our network, established over 20 years ago,
connects institutions of all sizes to help participants build
stronger relationships with their customers, fund more loans,
seamlessly manage their liquidity needs, and earn fee income. The
network brings scale, giving each participant access to tens of
billions of dollars in funding, the highest per-depositor and
per-bank capacity, and the peace of mind of being able to make
large-dollar placements. To learn more, visit www.intrafi.com.
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SOURCE Community Development Bankers Association (CDBA) and
National Bankers Association (NBA)