WASHINGTON—The Board of Directors of the Federal Deposit Insurance Corporation (FDIC) today approved a final Statement of Policy to enhance the agency’s efforts to preserve and promote Minority Depository Institutions (MDIs). The FDIC’s revised policy statement reflects public comment received in response to a proposal issued in August 2020 and updates, strengthens and clarifies the agency’s policies and procedures related to its existing MDI framework. Read the FDIC’s new Statement of Policy.
Specifically, the new Statement of Policy describes the FDIC’s actions to promote the preservation of MDIs and enhance communication between the agency and these minority-owned and managed institutions. The Statement of Policy also defines the program terms for technical assistance, training, education, and outreach. Finally, it explains how the FDIC applies examination standards in assessing the performance of MDIs.
The Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) established several goals related to MDIs: (1) preserving the number of minority depository institutions; (2) preserving the minority character in cases of merger or acquisition; (3) providing technical assistance to prevent insolvency of institutions not now insolvent; (4) promoting and encouraging creation of new minority depository institutions; and (5) providing for training, technical assistance, and education programs.
Under Chairman Jelena McWilliams’ leadership, the FDIC has sought new and innovative ways to engage with MDIs and better understand their needs. The FDIC frequently provides technical assistance and hosts banker roundtables and networking events to connect MDIs and non-MDIs for potential business partnerships. The MDI Subcommittee to the Advisory Committee on Community Banking provides an important source of feedback on program initiatives; provides a platform to promote collaboration, partnerships, and best practices; and identifies ways to highlight the work of MDIs in their communities.
In addition, the FDIC is working with private sector and philanthropic organizations to establish a Mission–Driven Bank Fund to support FDIC–insured MDIs and Community Development Financial Institutions (CDFIs). Read more about the Mission–Driven Bank Fund.