Bill > A11513

This bill, known as the "Bank of New York City Act," establishes the framework for cities with a population of one million or more to create and operate a municipal public bank, which is a bank owned and controlled by the city. The act amends existing banking laws to include municipal public banks as a type of banking organization and adds a new article to the banking law specifically detailing their structure, permitted activities, and governance. These public banks are intended to serve public purposes such as cost savings, strengthening local economies, supporting community development, and addressing infrastructure and housing needs, and they are required to partner with local financial institutions like credit unions and community development financial institutions (CDFIs), which are entities certified to meet specific federal requirements for serving underserved communities. The bill outlines requirements for the bank's charter application, including a minimum capitalization and a plan to prioritize loans for initiatives like affordable housing, small businesses, and student financing, while explicitly prohibiting retail banking and accepting deposits from the general public. The governance structure will involve a board of directors appointed by the city's chief executive and legislative body, with specific qualifications for members, and an advisory board to provide input and ensure ethical standards. The act also clarifies that the sponsoring city will not be considered a bank holding company due to its ownership of the municipal public bank and allows public funds to be deposited in these banks, exempting them from federal deposit insurance requirements for such deposits.