Geographies in Puerto Rico with Poor Banking Services
Published: Jun 27, 2023 05:45 AM
The Municipality of Coamo
The municipality of Coamo appears seven times in the list.
Juan Carlos García Padilla, mayor of Coamo.
Photo: Juan R. Costa Rivera
Geographies with Poor Banking Services
The municipalities of Coamo, Jayuya, Juana Díaz, Salinas, Santa Isabel, and Vieques are part of the list of geographies within the United States with difficulties and poor banking services that three federal agencies jointly prepared for the current year 2023.
Criteria for Problematic Situation
The list of “Distressed or underserved nonmetropolitan middle-income geographies” was prepared and published by the Board of Governors of the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency.
It uses criteria such as poverty rates greater than 20%, unemployment rates 1.5 times the US rate, and the loss of 10% of the population between the last two censuses. Population size, density, and dispersion are also considered, along with whether these factors help meet the essential needs of the community, including those of low- and moderate-income people.
Support for Revitalization or Stabilization
These geographies qualify to receive consideration under the Community Reinvestment Act (CRA) to support their revitalization or stabilization activities. The CRA encourages depository or banking institutions to help meet the credit needs of the communities where they operate.
Puerto Rico’s Geographies on the List
All the geographies of Puerto Rico included in this list meet the criteria of high rates of poverty and unemployment. Coamo appears seven times in the list, Jayuya twice, Salinas six times, Santa Isabel three times, and Vieques once.
All of them were also on last year’s list. Vieques is the only one categorized as “rural-remote”.
This content discusses the geographies in Puerto Rico that have poor banking services. It specifically highlights the Municipality of Coamo, which is mentioned seven times in the list. The article was published on Jun 27, 2023, at 05:45 AM.
What measures are being taken to improve banking services in Coamo and other underserved areas of Puerto Rico?
The government and various organizations in Puerto Rico have implemented several measures to improve banking services in underserved areas like Coamo. Some of these measures include:
1. Creation of Financial Empowerment Centers: The government has established financial empowerment centers in underserved areas to provide residents with access to financial education, counseling, and assistance in navigating the banking system.
2. Mobile Banking Services: Banks have introduced mobile banking services, allowing residents in underserved areas to access basic banking services through their smartphones. This includes checking account balances, making transactions, and even applying for loans.
3. Financial Inclusion Initiatives: The government has launched financial inclusion initiatives to enhance access to financial services in underserved areas. This includes encouraging partnerships between banks and community organizations, promoting the availability of basic banking products, and improving financial literacy.
4. Incentives for Banks: The government has provided incentives for banks to expand their presence in underserved areas. This includes offering tax incentives and grants to banks willing to establish branches or financial service centers in such areas.
5. Collaborations with Non-profit Organizations: Collaborations between banks and non-profit organizations have been fostered to provide resources and support for improving banking services in underserved areas. These partnerships often focus on enhancing financial literacy and providing access to affordable financial products.
6. Government Regulations: The government has implemented regulations to ensure fair and equitable access to banking services in underserved areas. This includes ensuring that banks provide adequate services in these areas and discouraging discriminatory practices.
These measures aim to address the financial exclusion experienced by residents in underserved areas like Coamo and contribute to their economic empowerment and overall development.
This article provides valuable insights into the challenges faced by distressed geographies, shedding light on the urgent need for targeted interventions and inclusive strategies to revive these struggling areas.
This article highlights the challenges faced by distressed geographies and serves as a reminder of the urgent need for sustainable solutions.