FDIC Chairman McWilliams Testifies before the Committee on Financial Services, U.S. House of Representatives

May 16, 2019 – FDIC Chairman Jelena McWilliams, in her testimony before the House Committee on Financial Services provided the following comments on Minority Depository Institutions.

I have challenged the FDIC to increase our efforts to promote and preserve the nation's Minority Depository Institutions (MDIs). Many of the institutions overseen by the FDIC are small banks, including MDIs, whose communities have unique needs for accessing financial services, and our oversight must reflect their critical role in our financial system. The FDIC embraces its statutory responsibility to preserve and promote the health of MDIs. The vitality of these banks is critical given their role in the economic well-being of the minority and traditionally underserved communities many MDIs serve.

The FDIC has a number of initiatives underway to support MDIs:

• In June of this year, we will host the first of several roundtables between MDIs and other FDIC-supervised institutions to share expertise and to promote possible collaborative opportunities, including direct investments and deposits in MDIs.
• In June, the FDIC will publish a research study on MDIs and host the 2019 Interagency MDI and Community Development Financial Institution (CDFI) Bank Conference.
• We continue to provide technical assistance to groups seeking to organize new MDIs, and to existing MDIs to support their efforts to acquire failing institutions (including three regional roundtables and two webinars over the last few months, an additional webinar in the future, and a workshop at our June MDI and CDFI conference).
• This fall, we will establish a new MDI subcommittee on the CBAC [Community Banking Advisory Committee] to both highlight the MDIs' efforts in their communities and to provide a platform for MDIs to exchange best practices.

Beyond these outreach efforts, the FDIC is working on a revised policy statement to underscore our commitment to the health of MDIs. We will continue other technical assistance efforts with these banks, including with groups seeking to create new MDIs.

Full statement: Oversight of Prudential Regulators: Ensuring the Safety, Soundness, and Accountability of Megabanks and Other Depository Institutions