Summary:

On June 15, 2021, the Federal Deposit Insurance Corporation (FDIC) Board of Directors approved an updated Statement of Policy Regarding Minority Depository Institutions (Policy Statement) , which details the framework by which the FDIC implements the goals set forth in Section 308 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) . The Policy Statement describes the FDIC’s framework and initiatives to fulfill its statutory goals with respect to MDIs. As noted in the Policy Statement , the FDIC will accept requests from entities for designation as an MDI.

This issuance establishes a process for an insured institution or applicant for deposit insurance to make a request that the FDIC recognize the institution as an MDI.

Statement of Applicability: The contents of, and material referenced in, this FIL apply to all FDIC–supervised financial institutions.

Highlights:

• The FDIC has long recognized the importance of MDIs and has historically taken steps to preserve and promote and encourage the creation of these insured financial institutions.
• FDIC supervised institutions or applicants for deposit insurance that seek to be recognized as an MDI may submit a written request, signed by a duly authorized officer or representative of the institution or applicant, at any time to the appropriate regional office.
  • Institutions may also submit a request in connection with a merger application or a change in control notice.
  • The request should contain sufficient information in support of the designation.
• If the submitted documentation indicates that the institution or applicant has met the eligibility requirements, the FDIC will send a letter acknowledging recognition of the institution as an MDI.
  • The letter will describe the resources available through the MDI Program.
  • The institution or applicant should maintain documentation supporting its continued eligibility for the MDI designation.