Houghton Mary
Organization: ShoreBank Corporation
Year Founded: 1973
Country: USA
Website: www.shorebankcorp.com
The ShoreBank Corporation holding company is the first community development financial institution in the United States to support economic equity and a healthy environment. Focus: Financial Inclusion Geographic Area of Impact: USA, Africa, Asia, Central Europe Model: Social Business Number of Direct Beneficiaries: 40,000 (2008) Annual Budget: US$ 174 million (2008) Percentage Earned Revenue: 100% Recognition: Schwab Fellows of the World Economic Forum Background ShoreBank was created to demonstrate that a regulated bank could be instrumental in revitalizing urban communities avoided by other financial institutions. Since its inception in 1973, the bank has reinvested significant portions of its profits into programmes that contribute to social change. Taking advantage of an amendment to the 1971 US Federal Bank Holding Company Act, which expanded permissible activities for bank holding companies to include investment in community development corporations, ShoreBank applied the law to create a new kind of bank – the community development bank. Innovation and Activities ShoreBank is a set of companies grouped under the ShoreBank Corporation holding company, the first and leading community development financial institution in the US to support economic equity and a healthy environment. Headquartered in Chicago, ShoreBank owns, operates, invests in and advises private development banks around the world. From the outset, ShoreBank’s primary purpose has been to focus on community development, not just maximizing financial returns or capital for its shareholders. These principles have been essential to sustaining ShoreBank’s mission and entrepreneurial heart. In 1985, then US Governor Bill Clinton asked ShoreBank to help start a community development in rural markets in his state of Arkansas. Impressed by the impact ShoreBank had on community development, he enacted federal legislation when he became president, which spawned the Community Development Financial Institution Program. This spearheaded community development banks across the US. The Entrepreneurs Ron Grzywinski grew up in a blue-collar neighbourhood in Chicago’s South Side. Prior to co-founding ShoreBank in 1973, Ron was president of Hyde Park Bank and Trust Company of Chicago and the First National Bank of Lockport in Illinois. Today, he is chairman of the board of ShoreBank Corporation and serves on its management committee. In 2005, Ron received the John W. Gardner Leadership Award from the Independent Sector. It marked the first time that this award for social impact was presented to a leader in the private sector. In April 2006, Ron and Mary Houghton were co-recipients of the Gleitsman Foundation Citizen Activist Award in recognition of ShoreBank’s inspiration to the worldwide community development banking industry. ShoreBank Corporation President Mary Houghton has been a member of the senior management of ShoreBank Corporation since she co-founded the company. Mary is also chair of ShoreBank International and ShoreCap International. She was named American Banker's Community Banker of the Year for 2004, and one of America’s Best Leaders 2007 by U.S. News and World Report.
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