Banks Win Community Development "Oscars". (Briefing)
2002; American Bankers Association; Volume: 94; Issue: 6 Linguagem: Inglês
ISSN
0194-5947
Autores Tópico(s)Nonprofit Sector and Volunteering
ResumoBeyond cold theories of finance, there is one true formula for banking success, community need + banking savvy = revitalization and pride. Community development has long been a integral part of banking that has not always been visible on the balance sheet. time and effort a bank uses to help its community not only boost the bank's morale but show the community, that we are not only about numbers. During the ABA'S Community and Economic Development Conference, held in March, the association gave out the Action Awards. winner of the Main Street Award, for a bank that has fostered commercial/downtown redevelopment as well as small business initiatives, was Park State Bank, Duluth, Minn. winner of the Community Projects Award, for a bank that performs community projects, volunteerism and/or charitable services, went to MC Bank & Trust Co., Morgan City, La. Looking for solutions, not blame Community development has been part of Park State Bank for three generations. With a history of using local dollars to support local businesses, Park State couldn't sir back and watch Duluth go through economic deterioration. closing of a steel mill in the late '70s had set in motion a downward slide. downward spiral resulted in regrets, finger pointing, and speculation on whose fault it really was. A group called BOND (Broad-Based Organizing for New Duluth) began to blame banks for not allowing citizens to build equity in their homes. Then the group speculated that banks' unwillingness to lend money was hindering the community from returning to business as usual. However, after many meetings, the Duluth citizens came to a mutual understanding that the economy wasn't growing because of the lack of viable businesses and jobs, and not just a housing problem. BOND created a plan and marketed it to seven local banks. Park State was selected to become a partner in the program, to form Park State Bank Designated Investment Fund (DIF). DIF is a partnership between the bank and the community advisory group to help cultivate new businesses and entrepreneurs. Park State helps obtain small business loans for businesses and entrepreneurs that express interest in starting up socially responsible projects for their local area. Determined to make a loan bankable, Park State exhausts all possible avenues--from the Small Business Administration to city government and the local university. Doing what a community bank should do Over the nine years since the program began, Park State has made strides in the advancement of its community-and improved the bank's earnings. The hardest part of starting this program was how to make it profitable, states Park State president (Ms. …
Referência(s)