Profitwise News and Views

September, 2003 Issue

Seeds of Growth Conference Summary

In Brief

The Federal Reserve Bank of Chicago Announces a New Research and Information Center
Recognizing the large and growing economic impact of immigrants in the United States, the Consumer and Community Affairs (CCA) division of the Federal Reserve Bank of Chicago announces the launch of the Center for the Study of Financial Access for Immigrants.

As defined by the U.S. Census Bureau, the number of foreign-born population in the United States is 32.5 million (March 2002 figures), approximately11.5 percent of the U.S. population. According to research conducted by the National Academy of Sciences, immigrants add roughly $10 billion to the U.S. economy each year, an estimate that excludes highly skilled labor and immigrant-owned small businesses. Immigrants contribute to the U.S. economy in tax payments, by most estimates more than they consume in aggregate public services and benefits. Many immigrants, due to barriers such as low English language proficiency and cultural orientation that does not embrace formal banking relationships, remain on the fringes of the U.S. financial system, and thereby limit their prospects for long-term wealth accumulation and economic prosperity.

Community development professionals, government agency representatives and financial institutions lead the research community in the emerging theme of "immigrant financial access." Most research on immigrant access has focused on the labor market, and immigrant participation in formal financial institutions is a critical and largely unstudied dimension of economic integration. A major goal of the Center is to provide a forum where representatives of financial institutions, community development professionals and researchers can interact and learn from one another. A second goal is to focus attention on the issues surrounding immigrant financial access by drawing on the expertise of national researchers. A third goal is to encourage future policy-oriented research that builds on the experience of community development professionals, financial institutions and government agencies. Finally, the Center is designed to identify partnerships and information sharing arrangements that would be mutually beneficial for financial institutions, community development professionals and the research communities in addressing the issues surrounding financial access for new Americans.

Federal Reserve Bank of Chicago CCA staff will also conduct related original research, document and raise awareness of proposals, policies and practices affecting immigrants, and invite noted policy-makers, financial industry representatives, advocates, corporate leaders, government officials, and others to share their views. The Community and Economic Development Research and Information Center (CEDRIC) page on the Federal Reserve Bank of Chicago's Web site will house the research, articles, and other information prepared and collected by the Center. A two-day conference focusing on the research to date and policy-oriented topics will take place April 15 and 16, 2004 at the Chicago Fed.