Many Queens neighborhoods are getting short-changed.
According to a study released by Congressmember Anthony Weiner and conducted by the Federal Deposit Insurance Corporation, although the number of banks in New York City has increased by 191 since 2006, only 37 additional banks have been established in Queens, the city’s largest borough. In that time, 73 banks have opened in Manhattan. The findings were reported outside Ridgewood Savings Bank in Forest Hills; a branch known for its signature stone-work that first opened in 1940.
“They don’t make banks like this anymore, but frankly, when it comes to a lot of Queens’ residents, they are not making banks at all anymore,” said Weiner, a member of the House Energy and Commerce Committee.
The study exhibited that on average, there are 19 banks for every 100,000 Queens residents while in Manhattan, there are 43 branches for every 100,000 residents. Also, the findings showed that banks are more prominent in neighborhoods with greater household incomes. Areas in Astoria, Elmhurst, Glendale and Fresh Meadows have fewer branches than they did in 2006, despite the 19 percent banking growth in the city.
“Increasingly, communities are finding that if they have money in their pockets already, they are more likely to get banking services added. However, if you are a working class community or a struggling community, your chances of finding any banking services are much lower,” said Weiner. “The smartest thing to do is not provide more money to the big national banks, but more lubricant for the lending and neighborhood community banks. It seems that those banks have a much greater connection to the community and are much more likely to lend faster.”
According to Weiner, the best plan of action would be to revise the Community Reinvestment Act’s (CRA) bank examination ratings so that branch distribution and low-income services receive more weight while incentivizing banks to offer more services to low-income families through higher ratings and rewards.
“Small businesses are the life-blood of many communities here in Queens, and we need to make sure the flow of funding is made available to Queens businesses,” said Weiner.
