Eight Cities Selected to Promote Financial Stability Through Bank On Cities Campaign

WASHINGTON, April 12 /PRNewswire-USNewswire/ -- At a time when local economies are struggling and many families are finding it difficult to make ends meet, the National League of Cities' (NLC) Institute for Youth, Education and Families (YEF Institute) has selected eight cities to participate in its Bank On Cities Campaign. The Campaign assists cities in helping residents build and protect assets by promoting connections to the financial mainstream and helping them avoid predatory fringe financial services.

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The eight cities selected to participate include: Bryan, Texas; Denver, Colo.; Gaithersburg, Md.; Indianapolis, Ind.; Louisville, Ky.; Newark, NJ; Rapid City, SD; and St. Petersburg, Fla.

Modeled after the Bank On San Francisco initiative developed by San Francisco Mayor Gavin Newsom and Treasurer Jose Cisneros, the Bank On Cities Campaign creates relationships between citizens, local banks and other community partners to ensure that families have access to starter bank accounts, financial education and other asset building opportunities.

Currently, there are 28 million unbanked and 44 million "underbanked" Americans who lose $11 billion each year to check cashers and payday lenders. City leaders across the nation are grappling with the impact of financial instability on local economies. Municipal officials recognize that ownership of various assets is essential to keeping citizens out of poverty.

"This program provides a tremendous opportunity for cities to engage their citizens in an effort to build assets and create financially stable households," said Kathleen M. Novak, president, National League of Cities, mayor, Northglenn, Colo. "The opportunities this program provides are critical to enhancing the broader economic vitality of cities."

Throughout the one-year project, the cities will receive intensive technical assistance from NLC through conference calls, web seminars and convenings to engage in peer networking and share successful ideas. City officials will develop action plans to outline the city's goals in the Bank On Cities Campaign, using advice and resources from NLC staff and national experts.

During the first two years of Bank On San Francisco, more than 31,000 accounts were opened through 17 participating financial institutions, saving San Franciscans nearly $20 million. In the last year, several other cities have launched similar initiatives with guidance from NLC, the City of San Francisco and other organizations.

NLC's Bank On Cities Campaign is supported by the Annie E. Casey Foundation and the Ford Foundation. In 2008, the YEF Institute's Bank On Cities Campaign provided technical assistance to ten cities, many of which have already launched successful programs to reach the unbanked.

The National League of Cities is the nation's oldest and largest organization devoted to strengthening and promoting cities as centers of opportunity, leadership and governance. NLC is a resource and advocate for 19,000 cities, towns and villages, representing more than 218 million Americans. www.nlc.org.

SOURCE National League of Cities