NY A04818

Expands the definition of "bank" for municipal deposit purposes to include savings banks, savings and loan associations, and federal savings associations located and authorized to do business in New York

Allows credit unions to accept local government deposits with phased-in limits: $500,000 per institution in 2026, increasing by $1 million annually until reaching $5 million per institution in 2031

Requires credit unions with average municipal deposits exceeding $300,000 to invest in community purposes (minority/women-owned businesses, affordable housing, financial literacy) at 0.35% of their average daily balance, capped at $100,000 annually

Expands the state Community Bank Deposit Program by increasing maximum deposits from $250 million to $300 million each for the comptroller and commissioner of taxation and finance, and requires annual reporting on program efficacy

Directs the Department of Financial Services to study and report by January 1, 2031 on the impact of allowing these expanded institutions to accept municipal deposits, with provisions for credit unions expiring December 31, 2031