New York Assembly Bill A08705

New York 2025-2026 Regular Session

• Introduced: 5/30/25
• Refer: 5/30/25
• Report Pass: 6/4/25
• Refer: 6/4/25
• Refer: 1/7/26

Caption

Directs the department of financial services to conduct a study on the banking development district program and to make recommendations to improve such program.

Summary

A08705 directs the New York State Department of Financial Services, or the superintendent acting through the department, to study the state’s banking development district program and recommend ways to improve it. The study must examine where underbanked communities and households are located in New York, why they remain underbanked, and how the program is currently operating. It must also review all participating financial institutions and assess their local economic impact, including the number of loans made and customers served. The bill requires the department to deliver the study and recommendations to the governor and the legislature within 12 months of the act’s effective date. It defines “underbanked” as having insufficient access to financial institutions for banking and investment services. The measure takes effect immediately and does not itself change banking rules or create new program requirements; instead, it creates a formal review process intended to inform future policy changes.

Impact

The bill would not directly amend substantive banking law or alter the banking development district program’s eligibility, incentives, or obligations. Its legal effect is to require the Department of Financial Services to produce a statewide study and policy recommendations, which could later support legislative or administrative changes to expand access to banking services in underserved areas. The study is aimed at unbanked and underbanked communities, financial institutions participating in the program, and state policymakers.

Sentiment

The available voting history suggests generally favorable sentiment toward the bill, as the Assembly Banks Committee advanced it by a 23-7 vote to Ways and Means. The bill’s purpose—improving access to financial services in underbanked communities—appears to have broad policy appeal, especially as a fact-finding measure rather than a direct regulatory mandate. No committee transcript is available, so the record does not show detailed debate or amendments.

Contention

The main point of contention is likely the value and scope of the study itself: whether the state should devote resources to another report versus moving directly to program changes, and how much weight should be given to the banking development district program’s effectiveness. Any opposition appears limited, given the committee vote, but could come from members concerned about administrative burden, cost, or whether the program should be expanded without clearer evidence. Supporters likely emphasize that the bill is a low-risk step toward improving access to banking in unbanked and underbanked neighborhoods.