ARLINGTON, Va. -- Ninety-seven percent of banks responding to the Consumer Bankers Association's 2002 Survey of Bank-Sponsored Financial Literacy Programs sponsor or support through partnerships a variety of financial literacy programs, according to the report released today at CBA's Community Reinvestment Conference. The complete study is available at CBA's web site, http://www.cbanet.org/ .
Sixty percent of respondents say their programs target issues associated with predatory or abusive lending practices, such as flipping, avoiding unscrupulous lenders, excessive interest rates or payday loans. The survey includes 68 bank and thrift institutions that hold 60% of the total bank and thrift assets in the U.S.
Ninety-seven percent offer mortgage and home ownership counseling, typically in connection with an affordable mortgage program. Today, 91% of respondents offer an affordable mortgage program, a number similar to that found in a CBA survey of affordable mortgage programs ten years ago.
"Today we have record rates of homeownership across all income and ethnic segments, and these programs have played an important role in achieving what has traditionally been viewed as the key to the American dream," said CBA President Joe Belew.
In addition to measuring the scope of bank financial literacy efforts, the report includes details on many specific programs.
Participation in homeownership counseling or a financial literacy program is mandatory in 75% of those affordable mortgage programs. In addition, 45% of respondents said that the institution has a foreclosure prevention program in place.
"There is also widespread support of public school programs, with 87% of banks supporting programs in some way," Belew said.
Seventy-two percent of these banks participate in the "Adopt-a-School" program, a national initiative that creates partnerships between schools and local businesses, and 71% engage in programs where employees tutor students. At the post-secondary level, 45% of financial institutions offer financial literacy programs.
To promote small business development, 65% of responding banks offer small business development training, which, in most cases, is delivered in partnership with community-based organizations or business development agencies such as chambers of commerce, local business development corporations or the Small Business Administration.
"Small businesses are the greatest source of new job creation in our economy, and provide financial rewards to those who are willing to work hard and take risks," Belew said.
Eighty-one percent of survey respondents offer or contribute to credit counseling services. "The need for this is obvious, with consumer bankruptcy filings reaching record highs of about a million and a half a year. Consumer credit counseling services remain the best alternative to bankruptcy, and the need is greater than ever," Belew said.
Most banks conduct evaluations of their financial literacy programs to ensure that they are having the necessary impact. For home ownership programs, 79% are evaluated. Two-thirds, 64%, of credit counseling programs and small business development programs are evaluated. In addition, banks evaluate 56% of public school programs.
