Move Your Money Initiative
Around the country, state and local governments are making decisions to move their payroll, deposit and other accounts in whole or in part away from the big banks and into community banks. New York City moved $25 million to local banks and credit unions. States and local governments can write bank procurement rules that would deny public business to banks that: violate state usury limits, back payday lending, are guilty of fraud or damage to state's financial interests, or miss state CRA or foreclosure targets.
CSI estimates that every 10 million dollars in state deposits moved from out-of-state multinational banks to in-state banks is likely to create or retain between 5 and 8 additional in-state jobs. The more narrowly these funds are directed into the smallest banks (those with net assets <$1B) and banks that specialize in business lending, the greater the job effects.
Reports
Estimating Job Effects of Moving Maryland Deposits from Large Banks to Community Banks
Estimating Job Effects of Moving Massachusetts Deposits from Large Banks to Community Banks
Massachusetts Memorandum