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A banking ordinance -- or at least a compromise proposal for creating one -- for the city of Los Angeles moved ahead on Monday, at the urging of labor unions, religious groups and members of Occupy L.A.

The City Council's Budget and Finance Committee asked to create a working group to formally develop the proposal, with the hope they will get it back by mid-January to adopt as quickly as possible.

"I believe there has been an outcry from the public for something like this," said Councilman Richard Alarcon, who has been pushing the proposal. "I hope you look at this as a way to stimulate investment in the city and reward banks for good behavior."

The most recent proposal would create a committee to develop a score card for the city to use in deciding with which banks it should do business. The scorecard would rate the institution on matters such as the number of branches a bank has throughout the city, its foreclosure policy and the number of loans it has throughout the city, among other factors.

Councilman Bill Rosendahl asked if the city could exert any influence over the banks when it comes to foreclosures.

"None of us want to see anyone lose their homes," Rosendahl said. "Is there anything we can do to halt foreclosures?"

Rosendahl asked the Housing Department provide information on the impact of foreclosures in the city and ways the city can help block them.

Alarcon said he believes the proposal will help boost investment in the city.

"I look at them as our partners, and if we are going to be working with them, we should get more bang for our buck," Alarcon said.

City Administrative Officer Miguel Santana said he agreed that it has taken too long to develop the proposal.

"This truly is a compromise," Santana said. "The banking industry doesn't want anything. And, advocates are reminding us that we have a responsibility as a major consumer to hold banks accountable.

"This provides a framework for the compromise."

Mayor Antonio Villaraigosa said last week he would sign the ordinance if it does not cost the city more money to bank than it does now.

A group of more than 100 members of various groups, including Occupy L.A., and SEIU, rallied before the committee meeting to urge its passage.

Alarcon, who has been pushing the proposal for two years, told the group to remain vigilant.

"Now we are being heard more," Alarcon said. "The question isn't if the encampment is here, but if the movement is continuing."