Banking and Credit Union Development Districts

Problem

Currently, Texas has one of the largest unbanked and underbanked populations in the country. A lack of access to financial institutions hinders families from being able to build credit and savings, and local businesses aren’t able to obtain the loans they need to build their small businesses.

Solution

Representative Eric Johnson has enacted legislation in Texas creating Banking Development Districts to help increase access to financial services in the areas that need it most. The legislation allows local governments and the state to seed new bank branches in these underserved areas with deposits from the city treasury. Building on similar efforts in other states, Johnson’s bill allows credit unions in addition to banks to establish themselves in these banking development districts, increasing the projected scale of impact.


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