In recent testimony at a federal inter-agency hearing on potential revisions to the Community Reinvestment Act (CRA), Bob Annibale, Global Director of Citi Community Development and Microfinance, highlighted the role of savings accounts and other asset-building opportunities in helping low- and moderate-income (LMI) individuals build a better future.
Many LMI families in America are "unbanked," meaning they have neither a checking nor savings account. Citing policy research as well as the experience of Citi community partners, Annibale testified that helping families save more can dramatically increase opportunities for major goals such as higher education and entrepreneurship, and can help stabilize cash flow in emergencies. He also noted that managing a bank account can help people become better consumers of other financial products such as mortgages.
Annibale asked policymakers to consider expanding the CRA's focus to include incentives for financial institutions to deliver savings and savings-led products that meet the needs of LMI communities. He also recommended that joint initiatives with community-based organizations -- including a number that were represented at the hearing to provide testimony -- should receive increased consideration and additional weight under the CRA. He commented that such collaborations, which are fundamental to Citi's community development work, help expand access to banking services and are essential to the goal of increasing savings among LMI families.
Annibale reiterated Citi's firm support of the CRA and its goal of benefiting LMI communities, as reflected in its strong record of compliance. He noted that Citi has received the highest possible rating -- "outstanding" -- for each of its five banks in its most recent CRA exams.
Annibale's full testimony at the Joint Public Hearings on the Community Reinvestment Act (CRA) Regulation is available here.
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