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    A Community Investment That Is Good for Your Bank

    Earn CRA credit using ICS and CDARS

    You already know that community banks are key to a well-functioning economy—taking the risks on small businesses and startups and creating jobs through that activity. But did you also know that Promontory Interfinancial Network offers services—including the ICS®, or Insured Cash Sweep®, service and the CDARS® service—that not only provide needed funding to underserved communities, but also can help your bank earn CRA credit?

    By depositing funds in Promontory Network banks that are also Community Development Financial Institutions (CDFIs)1 and Community Development Bankers Association (CDBA) institutions, your bank can help boost local lending in communities that need it. ICS and CDARS appeal to safety-conscious customers of all types. And socially responsible investors, such as certain large corporations, nonprofits, small business owners, and public fund depositors like using ICS and CDARS because the services enable them to protect their large-dollar deposits while keeping the amount of the deposits local.2

    See a list of CDFI/CDBA Member Banks that offer ICS and/or CDARS.

    Our Partnership with Community Development Bankers Association

    The Banking on Communities initiative is a joint effort by Promontory Interfinancial Network and the Community Development Bankers Association (CDBA) to help CDBA member banks raise funds that can be used to increase lending in underserved communities. The CDBA is a national trade association of the community development banking industry and was established to help its members better meet the credit needs of their communities. Because of their size (small) and location (underserved communities), CDBA members often find their funding options limited and have fewer resources to devote to attracting deposits. ICS, the Insured Cash Sweep service, and CDARS, provided by Promontory Interfinancial Network and offered by banks to their customers, have helped CDBA banks to raise billions of dollars in deposits since the launch of this initiative in 2004.

    Half of our members rely on Promontory Interfinancial Network's [ICS and CDARS] services to attract deposits so they can make loans supporting community development in some of the most underserved urban neighborhoods and rural communities in the country. On average, the community development banks attract reciprocal deposits at four times the level of other community banks. That translates into loans to small businesses, loans for mortgages and home improvement, loans for revitalization projects—loans that otherwise would not be made.
    —Jeannine Jacokes,
    Chief Executive and Senior Policy Advisor
    Community Development Bankers Association

    $2 Billion in Socially Responsible Investments Placed through ICS and CDARS in 2018

    Promontory Interfinancial Network services helped CDFI banks attract more than $2 billion in socially responsible investments (deposits) in 2018. More than two-thirds of the nation’s mission-oriented banks have been long-time Promontory Network members, an average of nine years each.


    of all CDFI certified banks are Promontory Network members


    of all minority-owned banks are Promontory Network members

    Contact a member of our Treasury Desk to learn more about using ICS and CDARS.

    [1] Community Development Financial Institutions include banks that dedicate the majority of their activities to serving economically distressed neighborhoods and those who otherwise lack access to traditional financial services. They are certified by the U.S. Treasury’s Community Development Financial Institutions Fund and provide credit and other financial services to underserved markets.

    [2] When deposited funds are exchanged on a dollar-for-dollar basis with other banks in the Promontory Network, your bank can use the full amount of a deposit placed through ICS or CDARS for local lending, satisfying some depositors’ local investment goals or mandates.

    Use of the ICS and CDARS services is subject to the terms, conditions, and disclosures set forth in the applicable program agreements, including the applicable Participating Institution Agreement and Deposit Placement Agreement. Limits apply, and customer eligibility criteria may apply. If a depositor is subject to restrictions with respect to the placement of funds in depository institutions, it is the depositor’s responsibility to determine whether the placement of its funds through ICS or CDARS, or a particular ICS or CDARS transaction, satisfies those restrictions. ICS program withdrawals are limited to six per month when using the ICS savings option. ICS, Insured Cash Sweep, and CDARS are registered service marks of Promontory Interfinancial Network, LLC.