The Federal Reserve Board released brief remarks by Governor Michael S. Barr to the Opportunity Finance Network Conference, focusing on Community Development Financial Institutions (CDFIs) as a practical channel for bringing credit and community development finance to communities that mainstream finance has not consistently served. Barr pointed to CDFIs’ flexible underwriting, tailored lending, and local relationships, citing examples across rural areas, urban neighborhoods, and tribal communities, including instances where CDFIs have stepped in as bank branches have closed. He highlighted the Federal Reserve’s Center for Indian Country Development’s work documenting CDFI activity in Native communities, including solutions such as seasonal payment structures, accepting tribal distribution payments as collateral, and land buy-back loans. The remarks also referenced CDFIs’ continued lending during the foreclosure crisis and their role in rapidly delivering relief to small businesses during the COVID-19 pandemic, alongside Barr’s prior work at the U.S. Department of the Treasury to help establish the CDFI Fund and support related initiatives.
Federal Reserve Board 2025-10-22
Federal Reserve Board publishes Governor Barr remarks highlighting Community Development Financial Institutions’ role in expanding credit access
Federal Reserve Board Governor Michael S. Barr highlighted Community Development Financial Institutions' (CDFIs) role in providing credit to underserved communities at the Opportunity Finance Network Conference. Barr emphasized CDFIs' flexible lending and local relationships, noting their impact in rural, urban, and tribal areas, and their support during financial crises. He also referenced the Federal Reserve’s Center for Indian Country Development's documentation of CDFI activities and his previous work at the U.S. Department of the Treasury.