Community development bank

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In the United States, Community development banks (CDBs) are banks designed to serve residents and spur economic development in low- to moderate-income (LMI) geographical areas. When CDBs provide retail banking 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 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. 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, or CDFI, interchangeably.

[edit] Notable community development banks

The largest and oldest community development bank is ShoreBank, headquartered in the South Shore neighborhood of Chicago. [1] Through its holding company ShoreBank Corporation, ShoreBank promotes its community development mission by operating CDBs and other affiliates in certain U.S. cities.

The Grameen Bank of Bangladesh is also usually classified as a community development bank. It was founded by Muhammad Yunus with consultation from ShoreBank. In 2006, the Grameen Bank and its founder were awarded the Nobel Prize.

Other CDBs include:

• Albina Community Bank in Portland, OR
• Carver Federal Savings Bank in New York, NY
• Central Bank of Kansas City in Kansas City, MO
• City First Bank of D.C. in Washington, D.C.
• Dryades Savings Bank in New Orleans, LA
• Hope Community Credit Union in Jackson, MS
• Liberty Bank & Trust in New Orleans, LA
• Louisville Community Development Bank in Louisville, KY
• Neighborhood National Bank in San Diego, CA
• Southern Bancorp in Arkadelphia, AR
• University National Bank in St. Paul, MN