For Banks

Banks have historically recognized that the company’s long-term success depends on the vitality of their communities. Banks continuously invest in activities that promote their local community development. Banks continuously invest in activities that promote their local community development. Banks can receive Community Reinvestment Act (CRA) credit for those activities, making it easier to meet their CRA obligations and enhance their public CRA ratings. Those ratings impact a bank’s ability to receive regulatory approvals and engage in a number of industry activities. 

Yet banks are constantly being harangued, often unfairly, for not expanding efforts to provide solutions for the nation’s economic and social woes. Impact investing is a significant way for banks to contribute to addressing environmental, social and governance at the forefront of days’ economic and political discourse. All of the larger banks recognize impact investing as a core point of emphasis to achieve long-term success in the marketplace. Because the banking industry is a low margin business, most banks cannot afford to make wild expenditures to support their environmental initiatives or their sustainability plans. Monarch’s impact funds allow banks to redeploy dollars earmarked for federal and state income taxes to be invested in funds addressing their environmental and social objectives, satisfying their tax obligations and providing positive financial returns. Monarch’s funds allow banks to derive these benefits and financial returns out of capital, which has historically been wasted in empty tax payments. In the future, banks will be criticized if their tax payments are wasted rather than used to narrow the affordable housing gap, create a more sustainable future, or preserve history and contribute to urban redevelopment. Simply using corporate cash to make mere tax payments is wasteful when Monarch’s funds provide so many highly productive alternatives.

Whether your strategy is to narrow the affordable housing gap, create a more sustainable future, or preserve history and contribute to urban redevelopment, consider the many opportunities Monarch has to redirect your tax dollars to fuel those specific preferences and see the positive, quantifiable outcomes. Low Income Housing Tax Credit (LIHTC) and Historic Tax Credit (HTC) financed projects meeting CRA requirements are also eligible for CRA credit.  

Banking CRA and Other Opportunities

Monarch is an industry leader in tax equity investing. With sufficient notice, interest and commitment, our acquisitions team can secure credits in these areas.

Income Opportunities for Banks

Other Opportunities for Banks