Each depositor insured to at the least $250,000 per insured bank
Remarks By Donna Tanoue Chairman Federal Deposit Insurance Corporation BeforeThe Seventh Annual Greenlining Economic Developing Summit Sacramento, Ca June 13, 2000
It really is belated, thus I will be brief.
This seminar is all about building communities. Its about producing possibility. About expanding success. And about sustaining the introduction of our best financial resource: Our individuals. All our individuals.
Banking institutions are chartered become engines of financial development.
To produce the power that is financial builds communities, produces possibility, expands prosperity, and sustains development.
But i will be right right here tonight to talk about exactly exactly exactly how some banking institutions can be participating in a practice that is unbecoming the practice of “renting down their charters,” so to talk, to nonbank payday lenders. The number of banks renting out their charters is small В– but that could change В– and that possibility triggers public policy concerns for the moment.
As numerous of you realize, this organization В– through Bob GnaizdaВ’s forceful and eloquent terms — has criticized particular types of payday financing for undercutting the efforts of men and women to obtain ahead as well as for undermining communities by draining money from low- and moderate-income areas . . .
The really opposite for the development that is economic summit seeks to encourage.
Nevertheless, in cases where a banker goes into the market that is payday appropriate settings to make certain risk-free operations, short-term little denomination customer financing might help to enhance use of banking solutions that can assist build long-lasting consumer relationships.
Payday advances are meant to be short-term payments that are small-dollar be reduced in the debtor’s next payday.
A banks that are few payday advances, and some other people offer liquidity financing to nonbank payday loan providers. Continue reading