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COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS: CURRENT ISSUES AND FUTURE PROSPECTS Lehn Benjamin, Cornell University Julia mouth Rubin, Brown University Sean Zielenbach, Housing Research Foundation INTRODUCTION Low-income communities and individuals have everlastingly had limited access to monetary services, affordable point of reference, and investment capital. The riddle has multiple causes, including historical patterns of racial and ethnic discrimination, banks and thrifts concerns about profitability, suburbanization and the race of capital out of the inner city, and the restructuring of the financial services industry. These and some other factors have created both a need and an opportunity for financial institutions that specific tout ensembley target minority and low-income communities. These alternative entities, now referred to as community reading financial institutions (CDFIs), include community development banks and credit unions; community development venture capital providers; micro-enterprise money; and housing, business, and facility loan funds.

Although diverse in scope and structure, all CDFIs have a primary mission of improving sparing conditions for low-income individuals and communities by providing financial products and services that usually cannot be obtained from to a greater extent mainstream financial institutions. They augment this financing with a range of educational services and borrower-specific technical assistance, so as to increase their borrowers economic capacities and potential. Despite a growing interest in CDFIs, we close up know very little about these institutions. This paper begins to talk this gap. It outlines the history of the CDFI industry and describes how CDFIs are responding to three specific demand in low-income communities: basic financial services; affordable credit for home purchase, rehabilitation, and maintenance; and capital for business development. We conclude with a discussion of three key quesitons facing the CDFI industry: 1. What are... If you demand to get a full essay, order it on our website: Orderessay

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