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American Financial Exchange (AFX), an electronic exchange for direct lending and borrowing for American financial institutions, announced today that People’s Bank of Seneca headquartered in Seneca, Missouri, has joined the Exchange. People’s Bank of Seneca is the first Native American minority-owned bank to become a member of the AFX.
With the addition of the People’s Bank of Seneca the AFX has members in all categories of minority-owned banks as defined by the FDIC. The other member banks are New York City- based Abacus Federal Savings Bank; Los Angeles-based Bank of Hope and Pacific City Bank (Asian-American); Lone Star National Bank of Texas and FirstBank of Puerto Rico (Hispanic); and Georgia-based Citizen’s Bank (African American).
“As a minority-owned bank, People’s Bank of Seneca is keeping the needs of our community top of mind,” said Deron Burr, President and CEO of People’s Bank of Seneca. “By becoming a member of the American Financial Exchange our ability to gain access to a network of banks will help us better serve our customers.”
AFX facilitates the determination of AMERIBOR®, a transaction-based interest rate benchmark for financial institutions via its electronic trading platform. The rate is calculated as the weighted average daily volume in the AFX overnight unsecured loan market. The rate is denoted as a 360-day annualized percentage rate up to the fifth decimal.
AFX has transacted more than $550 billion cumulatively since it opened in December 2015. AFX has 163 members across the U.S., which includes 133 banks and approximately 1000 correspondent banks. In addition, membership includes 30 non-banks, which is comprised of broker-dealers, private equity firms, business development corporations, hedge funds, futures commission merchants, insurance companies, asset managers and finance companies.
Current active AFX markets are overnight, thirty-day, and three-month unsecured loans; and 7- day secured loans.
In addition, a futures contract based on the AMERIBOR three-month and 7-day loan contracts, to be followed by other short-term interest rate products, began trading on August 16, 2019.
“We are proud and honored to announce People’s Bank of Seneca as an AFX member,” said Dr. Richard Sandor, Chairman and CEO of the AFX. “With the addition of People’s Bank of Seneca, AFX strengthens its commitment to add minority-owned banks. These institutions play a critical role in serving communities all over the country. Commercial logic and social value are at the core of our mission.”
