Statement of New York Superintendent of Banks Richard H. Neiman
Today’s Passage of the Small Business Lending Fund is the Right Step for Recovery
September 23, 2010
New York, N.Y.: “Congress’s final passage today of the Small Business Lending Fund is welcome news for entrepreneurs and families. With two out of every three jobs in America created by a small business, this bill responsibly increases credit to these businesses to reenergize our economy.”
“Importantly, this fund incentivizes financial institutions to lend by lowering the dividend rate at which they must repay the government if the institutions meet minimum lending requirements. This incentive addresses the criticism of TARP that banks received public capital without sufficient accountability towards increased lending, a critique reinforced by the TARP Congressional Oversight Panel on which I serve.”
“The program also removes the TARP stigma that has for too long discouraged small banks from participating in lending revitalization programs. It is these community banks that are the primary source of credit for small businesses, as small businesses often lack the same access to capital markets as large companies.”“Breaking the lending logjam and reinvigorating entrepreneurism requires a return to old-fashioned underwriting to identify the good investments that are languishing. This bill is the right step in that direction.”
The New York State Banking Department is the regulator for all state-chartered banking institutions, virtually all of the United States offices of international banking institutions, all of the State’s mortgage brokers, mortgage bankers, check cashers, money transmitters and budget planners. The aggregate assets of the depository institutions supervised by the Banking Department are more than $2.4 trillion.
In addition to regulating banking institutions, the Banking Department is active in informing and educating all New Yorkers on banking matters. To contact the Banking Department, please call 1-877-BANK-NYS or visit our Web site at www.dfs.ny.gov.