Requires Department of Banking and Insurance to examine and rate lending institutions with regards to lending, investments, and services provided to low- and moderate-income consumers.
Impact
The proposed law establishes a framework for financial institutions to demonstrate their commitment to serving community needs, particularly in areas that have historically been underserved. By institutionalizing the evaluation of financial institutions' performance in meeting these needs, S2722 aims to create a more equitable financial landscape in New Jersey. Institutions that receive unsatisfactory ratings will be required to develop improvement plans, which must be made publicly available for community input, ensuring transparency and accountability.
Summary
Bill S2722, sponsored by Senator Britnee N. Timberlake, is a community reinvestment bill that mandates the New Jersey Department of Banking and Insurance to evaluate and rate financial institutions based on their lending practices, investments, and services directed towards low- and moderate-income consumers. The goal of this legislation is to ensure that these institutions effectively serve the needs of their communities, particularly in providing access to credit and other financial products. This evaluation will occur every three years, taking into account various products and services offered by the institutions, such as retail lending, community development lending, and affordable deposit accounts.
Contention
While the bill is intended to promote community welfare, it may face opposition from some financial entities concerned about the regulatory burden imposed by mandatory evaluations and improvement plans. Critics might argue that the requirements could stifle innovation within financial services or impose significant operational challenges, especially for smaller institutions. However, supporters believe that the benefits of increased access to financial services for low- and moderate-income individuals will outweigh these concerns, as the bill could facilitate community development and economic stability in underserved areas.
Carry Over
Requires Department of Banking and Insurance to examine and rate lending institutions with regards to lending, investments, and services provided to low- and moderate-income consumers.
Carry Over
Requires Department of Banking and Insurance to examine and rate lending institutions with regards to lending, investments, and services provided to low- and moderate-income consumers.
Same As
Requires Department of Banking and Insurance to examine and rate lending institutions with regards to lending, investments, and services provided to low- and moderate-income consumers.
Requires undergraduate students to file degree plan and requires institutions of higher education and certain propriety institutions to develop pathway systems to graduation.
Requires undergraduate students to file degree plan and requires institutions of higher education and certain proprietary institutions to develop pathway systems to graduation.
Establishes process for merger or consolidation of public institution of higher education with other institutions of higher education or certain proprietary institutions; requires executive and legislative approval of merger or consolidation.
Establishes process for merger or consolidation of public institution of higher education with other institutions of higher education or certain proprietary institutions; requires executive and legislative approval of merger or consolidation.
Relating to the issuance of a diploma to a student graduating from a public institution of higher education that has undergone a merger, acquisition, or name change.