Federal regulators have deemed that Morgan Stanley Private Bank’s support of low-income and moderate-income neighborhoods in New York City and Westchester has been outstanding.
The Office of the Comptroller of the Currency gave the Purchase-based bank its highest rating in a report issued in February and publicly disclosed on July 1.
The agency measured the bank’s record of community development activities in low income and moderate income neighborhoods from 2021 through 2023.
The evaluation was required by the Community Reinvestment Act, a federal law enacted in 1977 to counteract discriminatory credit practices in poor neighborhoods.
Lack of affordable housing, coupled with high taxes and utility costs, were preventing even lower middle income families from buying homes in the region, according to the report.
Morgan Stanley Private Bank is a subsidiary of the global financial services firm, Morgan Stanley. The Purchase bank has no branch offices or automated teller machines and does not engage in retail activities. Yet, the Federal Deposit Insurance Corporation ranked it fourth in the region as of June 2023, with $179.8 billion in deposits.
The Comptroller of the Currency evaluated the bank’s performance in three community development categories: grants and investments, loans, and hours of service.
The agency found that Morgan Stanley Private Bank excelled on all three performance goals for three years, compared to targets the bank had set and the agency had approved.
- It put nearly $4.7 billion in 401 community development investments and grants, exceeding its goal by 256%. A $16.5 million investment, for example, was used to acquire and rehabilitate 85 public housing units in Westchester.
- The bank made 36 community development loans, totaling $393.4 million, mostly for affordable housing, exceeding its goal by 20%.
- Bank volunteers provided 6,572 hours of community development service, for example, working with nonprofit organizations on strategies and financial management. The hours exceeded its goal by 24%.
