Minority Depository Institutions Program
Preservation and Promotion of Minority Depository Institutions
The Federal Deposit Insurance Corporation Report to Congress for 2016

2016 Initiatives Supporting Minority Depository Institutions

Preservation of MDIs remains a high priority for the FDIC. In 2016, the FDIC continued to support MDI and Community Development Financial Institution (CDFI bank) industry-led strategies for success. These strategies include increased collaboration between MDI and CDFI bankers; partnering to share costs, raise capital, or pool loans; and making innovative use of federal programs. The FDIC supports this effort by providing technical assistance to MDI and CDFI bankers.

During 2016, the FDIC sponsored a discussion between trade groups representing MDIs, CDFI banks, and representatives of potential bank partners, focusing on Community Reinvestment Act (CRA) partnerships. In addition, the FDIC provided technical assistance to a group seeking to develop a private equity fund to invest in MDIs. The FDIC’s assistance addressed how non-minority bank investments in the fund might be considered under the Basel Capital rules, the Volcker Rule, and the CRA. Both community banks and larger insured financial institutions have valuable incentives under the CRA to undertake ventures with MDIs, including capital investment and loan participations.

Also in 2016, the FDIC, OCC and Federal Reserve co-hosted a webinar on strategic planning attended by approximately 50 MDIs, and began planning the 2017 Interagency MDI and CDFI Bank Conference, which the agencies will co-sponsor. The conference will be held in Los Angeles, where there is a significant concentration of MDIs. The conference will include an interactive panel featuring FDIC Chairman Marin J. Gruenberg, Federal Reserve Board Governor Jerome H. Powell, and Comptroller of the Currency Thomas J. Curry.