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Showing posts with the label Minority Bank Deposit Program

Low-Income Lending and Investing Opportunities a Priority For Black and Community Banks

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An article on BTCManager.com, reproduced in part below, noted several key features of HR41.

"On January 3rd, 2019, Bill HR 41, titled “RESCUE Act for Black and Community Banks” was released. It’s stated purpose is 'To provide regulatory relief for Black and community banks, to codify the Minority Bank Deposit Program, and for other purposes.'

The Minority Bank Deposit Program (MBDP) is a voluntary program that encourages credit unions, as well as female and minority-owned banks to become depositories and financial agents for low-income communities. The initiative was created by the US Department of Treasury and is meant to make banking services more accessible to the most underserved communities. 

Although not stated explicitly, 'codifying' the MBDP program could imply the use of a blockchain ledger and smart contract system to record and deploy short-term loans based on a predefined set of rules written in code. Such a system would be a huge boost to commu…

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