Community development bank

In the United States, Community development banks (CDBs) are banks designed to serve residents and spur economic development in low- to moderate-income (LMI) geographical areas. When CDBs provide retail banking services, they usually target customers from "financially underserved" demographics. Community development banks can apply for formal certification as a Community Development Financial Institution (CDFI) from the Community Development Financial Institutions Fund of the U.S. Department of the Treasury.

Organizers wishing to start a new CDB in the United States can seek either a State or National bank charter. Like any national bank, all Federally chartered CDBs are regulated primarily by the Office of the Comptroller of the Currency. According to the OCC Charter Licensing Manual, CDBs are required "to lend, invest, and provide services primarily to LMI individuals or communities in which it is chartered to conduct business." State-chartered Community Development Banks are subject to regulations, qualifications, and definitions that vary from state to state.

Some institutions use the terms CDB and community development financial institution, or CDFI, interchangeably.

Notable community development banks

The largest and oldest community development bank is ShoreBank, founded in Chicago in 1973. ShoreBank has branches in Chicago’s South and West sides, Cleveland, and Detroit. The bank established subsidiaries that provide equity investing, consulting, and environmental banking services and affiliated nonprofits that provide related financing, technical assistance, and consulting services. ShoreBank and its affiliated companies have projects in 30 countries. Notably, ShoreBank incorporated environmental conservation into its mission during the 1990s.

The Grameen Bank of Bangladesh is a microfinance organization and community development bank founded by Muhammad Yunus. The bank has grown into a family of over two dozen for-profit and nonprofit enterprises including the Grameen Foundation, and the Grameen Bank and its founder were awarded the Nobel Peace Prize in 2006.

Other CDBs include:

• Albina Community Bank in Portland, OR
• Carver Federal Savings Bank in New York, NY
• Central Bank of Kansas City in Kansas City, MO
• City First Bank of D.C. in Washington, D.C.
• Dryades Savings Bank in New Orleans, LA
• Hope Community Credit Union in Jackson, MS
• Liberty Bank & Trust in New Orleans, LA
• Louisville Community Development Bank in Louisville, KY
• Neighborhood National Bank in San Diego, CA
• Southern Bancorp in Arkadelphia, AR
• University National Bank in St. Paul, MN
• OneUnited Bank in Boston, MA