Partnerships between banks and CDCs

[PANKEL at aba.com]

Hello to all....

I am wondering if anyone out there can provide some guidance for
banks interested in partnering with local community groups or
CDCs. In particular, I am interested in getting more information
about what one should look for when considering a partnership.

How does one get a sense of how well the group or CDC is run?
Are there "best practices" or guidelines on how best to run a
CDC?

I would be interested in hearing any comments and suggestions on
publications in this area.


Thank you all very much

Philip Ankel
Pankel@ABA.COM


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[cirm at cais.cais.com]

I assume you are from the American Bankers Assn, and that the ABA now has
a site on the internet. Is this correct? If true, perhaps you could
explain the ABA's view concerning CDC's, CRA and the current proposals to
revise CRA?

Thanks.

Bill

On Fri, 2 Jun 1995 PANKEL@aba.com wrote:

> Hello to all....
>
> I am wondering if anyone out there can provide some guidance for
> banks interested in partnering with local community groups or
> CDCs. In particular, I am interested in getting more information
> about what one should look for when considering a partnership.
>
> How does one get a sense of how well the group or CDC is run?
> Are there "best practices" or guidelines on how best to run a
> CDC?
>
> I would be interested in hearing any comments and suggestions on
> publications in this area.
>
>
> Thank you all very much
>
> Philip Ankel
> Pankel@ABA.COM
>
>


This post transferred from the cdb-l mailing list

[memery at lcsc.edu]

>Hello to all....
>
>I am wondering if anyone out there can provide some guidance for
>banks interested in partnering with local community groups or
>CDCs. In particular, I am interested in getting more information
>about what one should look for when considering a partnership.
>
>How does one get a sense of how well the group or CDC is run?
>Are there "best practices" or guidelines on how best to run a
>CDC?
>
>I would be interested in hearing any comments and suggestions on
>publications in this area.
>
>
>Thank you all very much
>
>Philip Ankel
>Pankel@ABA.COM

I'm not sure what you are looking for, but we have a nonprofit group here
who works with a group of banks to make a pool of moeny available for
"nontraditional" borrowers. The funds are 90%gaurenteed by the sba. Our
group does the leg work; the bak gets cra credit and, hopefully, a lifelong
business customer.

Mary E. Emery, Director
Office of College Research and Community Development
Lewis-Clark State College
Lewiston, Id 83501
ph 208/799-2460; fax 208/799-2878; email: memery@lcsc.edu



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[NFCDCU at aol.com]

We have a number of examples among our membership of banks partnering with
community development credit unions (CDCUs) around the country. These
examples run the gamut, from banks making non-member, below-market-rate
deposits in CDCUs, to banks providing a wide range of technical, financial,
and in-kind support, to banks giving CDCUs closed bank branches (we have
three examples of that in New York City alone).

As far as knowing what to look for in a bank partner goes, that tends to be
easier in the case of CDCUs than in the case of other community development
organizations. First, CDCUs are regulated institutions, so ther are certain
minimum standards to which they must all conform. Second, CDCUs are
financial institutions, so banks tend to have a better idea of what to look
for in the case of a kindred instituion. Another way to allay possible
concerns is to work through intermediary organizations. In the case of loan
funds, a bank could contact the National Association of Community Development
Loan Funds (NACDLF). In the case of credit unions, a bank could contact us.

If you have any questions, or need any further information, please feel free
to contact me directly.

Morgan N. Sandquist
Chief Fiscal Officer/Program Manager
National Federation of Community Development Credit Unions
120 Wall Street - 10th Floor
New York, NY 10005-3902
(212) 809-1850
(212) 809-3274 - Fax
NFCDCU@aol.com - E-Mail


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