Access to capital and opportunity is a critical challenge for many low- and moderate-income groups in the US, as Deutsche Bank’s Community Development Finance Group explains to Neil Jensen
Shortages in housing and disparities in economic opportunity continue to be major problems in many countries, including highly developed economies. In the US, addressing these sorts of challenges has come to encompass more than state assistance, with the private sector also playing an important role. Banks, in particular, provide capital in underserved areas through the Community Reinvestment Act of 1977, and in the process facilitate investment that balances social impact with financial return.
Further to this point, in recent years there has been something of a shift in sentiment in financial markets, as individuals and institutions increasingly recognise the importance of environmental, social and governance factors in their investment decisions, and companies become more aware of their own social responsibilities above and beyond legal obligations.
Michaela Ludbrook, who is Managing Director and Head of Transaction Banking, Americas, the business in which the Community Development Finance Group (CDFG) sits, explains: “Deutsche Bank has been a leader among banks in supporting economic and housing development in New York City and was an early adopter of impact investing, having used its New York City experience to become the first bank to launch an emerging economy microfinance fund. We recognise the seriousness of our role in supporting local communities and the potential that our programmes have for helping to transform lives in those areas that are underserved.”
flow magazine is published twice per year and can be read online and delivered to your door in print
Find out more about products and services