June 25, 2010

One year ago, the Treasurer's Office took action to ensure that Illinois banks reinvest in our communities.

Together with the not-for-profit Monroe Foundation, we created a three-point community reinvestment pledge that requires all banks that receive or renew state deposits to provide:

1) Non-predatory mortgages to customers;
2) Conventional banking services to residents that rely on payday lenders and check cashers; and
3) Small business and economic development initiatives to spur job creation in underserved communities.

Then, we went one step further and empowered residents to hold these banks accountable. On a monthly basis, we post a list of banks with state deposits on our website alongside a complaint form where residents can document shortcomings. Complaints prompt an internal review that could result in the removal of state deposits from that institution.

Today, I am delivering our first year results. I am happy to report that to date 181 banks have signed our pledge, and we've received no resident complaints. Does this mean all of our problems are solved? Of course not. Foreclosure remains a serious threat to our communities, as do payday loan shops and check cashers.

But, the leverage that comes with this community reinvestment pledge is one way we can make the financial industry more accountable to Main Street.

That is why as your next State Treasurer, I will work to make this pledge part of state law. We must have a legal mechanism in place to make sure that banks that do business with the state demonstrate a willingness to offer their services in underserved communities. We want to encourage responsible lending and safe banking practices to maintain and revitalize our communities.

Sincerely,

Robin Kelly