Responsible banking ordinance requires financial institutions to share more information publicly
The Minneapolis City Council today approved changes to the City’s responsible banking ordinance that require financial institutions that provide banking services to the City to publicly disclose an expanded set of information about their lending practices and policies each year.
The newly expanded ordinance will create greater transparency and allow the public a clearer view of how banks that handle public dollars operate in our community. The information can also be used by City leaders in selecting financial service providers in the future.
The ordinance now requires financial institutions to publicly share information by July 1 of each year on loan modifications and foreclosures on residential mortgages on properties located within the city, as well as numbers and amounts of loans given to small businesses, among other data.
Commercial banks that provide banking services will also be required to file a Community Reinvestment Plan every two years that describes current and proposed initiatives to address the financial needs of the city and its residents and businesses.
Minneapolis is the tenth city in the country to adopt a responsible banking ordinance. Cities that have already adopted similar ordinances include Cleveland, Seattle, New York City, Seattle, Boston, and others.
In developing the responsible banking ordinance, the City worked with the banking industry, specifically Wells Fargo, and a number of organizations that focus on creating more transparency and accountability among banks and work toward giving the public a greater voice in the stewardship of tax dollars. Those organizations include Jewish Community Action and the Northside Community Reinvestment Coalition, which includes the Cleveland Neighborhood Association, MN State Baptist Convention, Minneapolis Urban League, Hawthorne Neighborhood Council, Lao Assistance Center of Minnesota, Hmong American Partnership, Jordan Area Community Council, Harrison Neighborhood Association, Northside Residents Redevelopment Council, Jewish Community Action, and McKinley Community.
Published Oct. 4, 2013