Regulators at the New York state Department of Financial Services on Wednesday moved to review how banks overseen by the state are providing services to minority-owned and women-owned businesses in their communities. 

The assessment will be rolled into ratings under the Community Reinvestment Act, which is meant to ensure financial insititutions are providing credit needs to communities. 

“This revised regulation enables DFS to obtain the data necessary to verify that banks are providing equitable access to credit to minority- and women-owned businesses, and to hold them accountable when they do not," said Financial Services Superintendent Adrienne Harris. 

The final version of the regulation will have financial institutions collect and submit data to the Department of Financial Services, including the details of applications, including whether the applicant is a minority-owned business or a firm owned by women. The data of application, the type and amount of credit being applied for and whether the applications was approved or denied as well as the size and location of the business. 

“I applaud Superintendent Harris and the Department of Financial Services for updating regulations implementing the Community Reinvestment Act to ultimately bolster lending opportunities available to MWBEs. Whether it’s a lifeline to stay afloat or taking the next step towards expansion, access to lending is critical. Small businesses are the backbones of communities, so strengthening MWBE’s and other small businesses strengthens New York State’s economy,” Assembly Majority Leader Crystal Peoples-Stokes said.

The new regulation takes effect later this year on Aug. 8.