By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Private Banks RankingPrivate Banks Ranking
Notification Show More
Latest News
China Renaissance shares plunge after it says founder Bao Fan is missing
Singapore’s banking authority MAS says DBS outage was ‘unacceptable’
Finance
Tesla expects reduced tax credit for Model 3 by March-end
Business
UBS rehires Ermotti as CEO to guide Credit Suisse tie-up
UBS rehires Ermotti as CEO to guide Credit Suisse tie-up
Banking
Higher BTR Rents Tend to Correlate With Greater Resident Satisfaction
Best Savings Bonds of 2023
Investing
Aa
  • Finance
  • Business
  • Banking
  • Investing
  • ETFs
  • Mutual Fund
  • Personal Finance
  • 2022 RANKING
Reading: Brown calls for public meetings over LMI-area branch closures
Share
Private Banks RankingPrivate Banks Ranking
Aa
  • Finance
  • Business
  • Banking
  • Investing
  • ETFs
  • Mutual Fund
  • Personal Finance
  • 2022 RANKING
Search
  • Finance
  • Business
  • Banking
  • Investing
  • ETFs
  • Mutual Fund
  • Personal Finance
  • 2022 RANKING
Have an existing account? Sign In
Follow US
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
Private Banks Ranking > Blog > Banking > Brown calls for public meetings over LMI-area branch closures
Banking

Brown calls for public meetings over LMI-area branch closures

By Private Banks Ranking 3 weeks ago
Share
4 Min Read
Brown calls for public meetings over LMI-area branch closures
SHARE

Senate Banking Committee Chairman Sherrod Brown, D-OH, urged the Office of the Comptroller of the Currency to hold public meetings, when a community requests them, to evaluate the impact of bank branch closures on low- to moderate-income communities, according to a letter last week to Acting Comptroller Michael Hsu.

The letter comes in the wake of a petition submitted by the nonprofit Fair Housing Center in Toledo, Ohio, regarding the proposed closure of a Fifth Third branch in its Englewood neighborhood.

The Fair Housing Center on Feb. 16 asserted that local residents would be denied access to the financial services and credit opportunities they need when Fifth Third leaves.

“The neighborhood where this bank branch is located is an area that was historically redlined and has remained segregated by race due to the lasting effects of those policies,” the group wrote, according to American Banker.

The OCC responded to the letter Feb. 23, saying it would consider the group’s comments in its subsequent Community Reinvestment Act evaluation of Fifth Third but did not say it would hold a public meeting.

“Banks serve a unique role in the functioning of our financial system and economy,” Brown wrote Thursday. “That is why they must serve the needs of all members of their community, and all communities across the country.”

President Joe Biden issued an executive order in 2021, demanding “more robust scrutiny” of bank mergers. While the order aimed somewhat to limit the impact of bank mergers on LMI communities, individual branch closures may be a more granular focus than a national policy can support. 

See also  Nebraska banks seek changes to anti-ESG bill tied to public deposits

Brown in April 2022 urged Hsu and Federal Reserve Chair Jerome Powell to review and reconsider the agencies’ approach to big bank mergers — and indeed, the Fed in October, proposed a change in policy.

“Troublingly, branch closures are usually clustered in low- and moderate-income communities,” Brown said in his April 2022 letter. “That’s why these closures often push consumers out of the banking system and, toward high-fee, predatory non-bank financial companies — like check cashers and payday lenders — that appear where branches used to be.”

Jason Almonte, the OCC’s director for large bank licensing, told American Banker that banks do not need the OCC’s approval on the closing of an individual branch. That’s a business decision, Almonte said.

Fifth Third regularly evaluates its branch network and keeps in mind consumer preferences, a bank spokesperson told the publication.

Fifth Third will maintain an ATM at the site of the closed Toledo branch, American Banker reported.

“Although we have one location closing in Toledo, we have two additional financial centers within the same zip code to serve customers,” the spokesperson said in an email. “Our team has been welcoming and working with those customers as they transition.”

A provision of the federal law states that when an interstate bank proposes a branch shutdown in a low- or moderate-income area, the notice to customers announcing the closure should carry the mailing address of the federal banking agency and a statement saying customers could mail the agency about the closing.

Fifth Third’s branch closure notice did not indicate that people could submit comments to the OCC, George Thomas, CEO and general counsel of the Fair Housing Center, told American Banker.

See also  How Amalgamated Bank's Priscilla Sims Brown leads with purpose

Fifth Third said in January it planned to shut down 23 branches by the end of 2023. Eight of those are in Ohio, according to an OCC filing.

Source link

You Might Also Like

UBS rehires Ermotti as CEO to guide Credit Suisse tie-up

Sergio Ermotti returns as UBS CEO to steer Credit Suisse takeover

FDIC faces $23 billion in costs from bank failures. It wants big banks to pay

Credit Suisse has violated U.S. tax evasion deal, Senate Committee finds

FDIC tells Signet users to close accounts, so it can sell the platform

TAGGED: branch, Brown, calls, closures, LMIarea, meetings, public
Share this Article
Facebook Twitter Email Print
Share
Previous Article Retailers Are Following Workers Out of City Centers
Next Article Berkshire Hathaway resumes Occidental purchases, stake reaches 22.2%
Leave a comment

Leave a Reply Cancel reply

You must be logged in to post a comment.

Private Banks RankingPrivate Banks Ranking
Follow US

© 2022 Private Banks Ranking- 52-54 Lime Street, EC3, London. All Rights Reserved.

  • Blog
  • Contact
  • Privacy Policy
  • Terms & Conditions
Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

I have read and agree to the terms & conditions
Zero spam, Unsubscribe at any time.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?