Texas Senate Bill SR228

Texas 2019 - 86th Regular

Caption

Recognizing Community Development Financial Institutions.

Impact

The passage of SR228 acknowledges the contributions made by over 40 CDFIs across Texas, which include community development banks, credit unions, and nonprofit loan funds. By recognizing these institutions, the bill aims to reaffirm their importance in driving economic vitality in the state and helping thousands of residents achieve financial stability. The resolution serves not only as commendation but also as a call for continued support for the work CDFIs do in promoting inclusive financial systems.

Summary

Senate Resolution 228 recognizes the significant role played by Community Development Financial Institutions (CDFIs) in enhancing the economic security of Texans. These institutions, established under the Riegle Community Development and Regulatory Improvement Act of 1994, focus on providing financial services and products to underserved communities, thus fostering economic development within these areas. The resolution highlights the essential partnership CDFIs form with traditional financial institutions to support underbanked clients, allowing for increased participation in the banking system.

Contention

While SR228 is largely ceremonial and does not introduce any specific policy changes or funding provisions, it reflects an increasing awareness of the need for financial inclusion initiatives within economic policies. The resolution may spark discussions on potential future legislation aimed at providing more sustainable support mechanisms for CDFIs, especially in light of ongoing debates about how best to facilitate access to capital in underserved communities.