New York 2025-2026 Regular Session

New York Assembly Bill A09573

Introduced
1/21/26  

Caption

Relates to the community bank deposit program; increases the maximum amount of funds on deposit at a community banking institution to thirty million dollars.

Impact

The bill's passage will have significant implications for both state banking regulations and local communities. With the increased deposit limit, community banks will have more latitude to manage their funds and potentially extend additional credit to local residents and small businesses. This could lead to enhanced investment in community development projects, increased job creation, and greater overall economic stability within the regions these banks serve. Moreover, it aligns with the state's goal of fostering a robust local banking environment that can compete with larger financial institutions.

Summary

A09573 is a legislative bill that seeks to amend the existing banking law in New York. The primary objective of this bill is to enhance the community bank deposit program by increasing the maximum deposit limit at community banking institutions from twenty million dollars to thirty million dollars. This adjustment aims to provide community banks with greater liquidity and improve their ability to support local economies. By allowing higher deposit limits, the bill intends to strengthen community banks, making them more resilient against financial challenges and ensuring they can better serve their local customers and businesses.

Contention

During discussions surrounding A09573, proponents touted the benefits of stronger community banks in supporting local economies. They emphasized how increased deposits could facilitate the provision of loans to local entrepreneurs and small businesses, thereby stimulating economic growth. However, there were concerns raised regarding the effectiveness of regulatory oversight of community banks and whether the increase in deposit limits would truly translate into tangible benefits for the community. Critics questioned if the amendments might inadvertently lead to risks of mismanagement by banks unable to handle larger deposits efficiently.

Companion Bills

NY S08406

Same As Relates to the community bank deposit program; increases the maximum amount of funds on deposit at a community banking institution to thirty million dollars.

Previously Filed As

NY S08406

Relates to the community bank deposit program; increases the maximum amount of funds on deposit at a community banking institution to thirty million dollars.

NY A08665

Relates to minority depository institutions which apply to establish a home or branch office in an unbanked or underbanked community; provides that such institutions shall be entitled to receive deposits from the state comptroller and the commissioner of taxation and finance.

NY SB115

Enacting the Kansas bullion depository act to authorize the state treasurer to establish, administer or contract for the administration of bullion depositories and allowing for state moneys to be deposited in such bullion depositories and invested in specie legal tender.

NY S00277

Authorizes the town of Chester to establish community preservation funds; establishes a real estate transfer tax with revenues therefrom to be deposited in said community preservation fund.

NY A09652

Extends the authority for the town of Brookhaven to impose a real estate transfer tax with revenues therefrom to be deposited into a community preservation fund until 2045.

NY S08555

Extends the authority for the town of Brookhaven to impose a real estate transfer tax with revenues therefrom to be deposited into a community preservation fund until 2045.

NY A02022

Authorizes the town of Chester to establish community preservation funds; establishes a real estate transfer tax with revenues therefrom to be deposited in said community preservation fund.

NY A09685

Relates to supporting depositions that are served at the time of issuance of a simplified information.

NY A11264

Provides that every banking institution operating in the state of New York shall offer at least one no-fee basic banking account that charges no monthly maintenance or service fees, requires no minimum balance, charges no fees based on account inactivity, and provides certain essential services including deposits and withdrawals, debit card access, and electronic payments and transfers.

NY S08649

Provides for multiple-person accounts; requires a signature card; provides that absent indication to the contrary, funds remaining in such an account upon the death of the depositor shall be deemed part of the depositor's estate.

Similar Bills

No similar bills found.