Meeks Analysis Shows Modern-Day Redlining in Queens

Washington, DC – Today, Congressman Gregory W. Meeks, Chair of the House Financial Services Subcommittee on Consumer Protection and Financial Institutions, chaired a field hearing on modern-day redlining. Congressman Meeks then held a press conference unveiling new analysis confirming that race, and in particular the density of black and Hispanic populations, is the predominant determinant of bank branch density, and banking deserts.

"My office's analysis proves what we've anecdotally seen here in Queens all along: the more a community is black and brown, the less banks you see. What's startling here is just how disproportionate that reality is. Redlining cannot not be spoken of in the past tense, as a dark chapter in our nation's history. Despite our proximity to Wall Sreet, relining is very much still present here in Queens, hurting minority communities' ability to get a loan to start a small business or a mortgage to get home and lift themselves into the middle class. I suspect it is very much present throughout much of America's minority communities," said Congressman Gregory W. Meeks.

The analysis isolated Census data, and found that Queens zip codes with less than 25% black and Hispanic populations had a total of 193 bank branches, for a total population of 609,655 people. That's One for every 3,159 people. Whereas zip codes that were over 75% black and Hispanic populations were found to have one bank branch for every 22,936 people, or one bank branch for every 22,936 people. That's over 7 times fewer banks in predominantly black and brown communities. Income disparities did not explain these differences, which existed even in higher income communities of color.

During the panel, Meeks was joined by his colleagues, Reps. Carolyn Maloney, Emanuel Cleaver, Al Green, Yvette Clarke, Kathleen Rice, and Alexandria Ocasio-Cortez, who heard testimony from a panel of experts on affordable housing and banking marginalized communities, including from the Association for Neighborhood and Housing Development (ANDH), Chhaya CDC, Neighborhood Assistance Corporation of America (NACA), National Association for Latino Community Asset Builders (NALCAB), Inclusiv, and the National Bankers Association.

"The witnesses we heard from today are some of our closest allies here at home, who share our commitment to ensuring services for unbanked and underbanked communities. Together, we are fighting to preserve the Community Reinvestment Act to combat redlining, and to protecting the minority banks, credit unions, and CDFIs in these underserved communities. These institutions are empowering our neighbors and the small businesses that make our communities thrive and we cannot let the Trump Administration gut the CRA and make it even easier for banks to avoid lending to low-income and underserved communities. The Administration's proposal is so misguided that even the Federal Reserve refused to join it. I'm committed to fighting this deeply harmful proposal because we must ensure that banks continue to lend to those who need it most. Access to banking services shouldn't depend on your zip code," said Rep. Carolyn B. Maloney (NY-12).

"People tend to talk about redlining as if it's a thing of the past, a problem from a previous generation. Sadly, as Congressman Meeks' analysis bears out, this remains a serious obstacle for black and brown communities in Queens, Kansas City, and across the nation," said Rep. Emanuel Cleaver (MO-5). "I'm thankful to Congressman Meeks for hosting today's field hearing to highlight the issue and hear from people committed to extending banking services to the communities who need it most. As we seek to protect and strengthen the CRA in our effort to combat modern-day redlining, I'm certain today's discussion will be exceedingly valuable."

"Redlining is among the unfinished business of the Civil and Human Rights Movements," Representative Al Green (TX-9) added. "Today's hearing revealed that redlining and discriminatory conduct persist and that we have much more to do. It is this unfinished business that compels me to continue fighting to end invidious discrimination in all its forms - including banking deserts - and to open economic opportunity to all who seek it. We have seen firsthand, investigated, and penned legislation to end discrimination in housing and housing finance. The findings from this hearing will help us to perfect financial services bills such as the Ensuring Diversity in Community Banking Act, the Housing Fairness Act, and the Fair Housing for All Act. Today's hearing has provided an avenue to assess and remediate the alarming facts and harmful effects of banking deserts as well as discrimination in communities of color. It is my honor to join Chairman Meeks and my other colleagues in this vital work. I look forward to returning to Washington, D.C., and continuing our efforts to address the findings of this hearing by advancing this critical legislation."

"Though it does not garner the attention it deserves, few public policies have had an impact as lasting and far-reaching as our history of redlining. Sadly, far too many Americans have no understanding of our deeply painful shared history around this government policy. We must never forget this immutable fact: The federal government created the middle class by expanding access to homeownership and systematically excluded marginalized communities through redlining. Today's hearing helped expose the public to this truth so that we can all work together to begin the hard work necessary to rectify this painful history," saidRep. Yvette D. Clarke (NY-09).