IL HB5194

Creates a banking development district program administered by the Department of Financial and Professional Regulation to encourage establishment of banking branches in areas with underbanked and unbanked populations.

Allows local governments and depository institutions to jointly apply for banking development district designation, with the Secretary of Financial and Professional Regulation required to issue a determination within 60 days.

Establishes criteria for district approval including proximity of existing banking services, unmet consumer needs, economic viability, commercial development, and potential economic development impact.

Permits the State Treasurer and local governments to give preference to depository institutions with approved banking development district applications when investing or depositing public funds.

Takes effect January 1, 2023.