PHOENIX – Phoenix is the latest city to adopt a local banking policy that will entail depositing $50 million of city funds in local credit unions and banks.
Credit unions and banks must either be Arizona-chartered or have a physical presence in Maricopa County.
Phoenix is the latest city to join a group of municipal and state governments that have sought out community institutions in the wake of the financial crisis. Recently, Portland, Ore., deposited almost $3 million in 12 local credit unions and banks.
Phoenix officials said they hope the local deposits will provide community lenders with the capital to make loans to businesses and individuals. In turn, Phoenix hopes to get a higher rate of return on some of its investments.