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Minority Depository Institutions Program

Mission-Driven Bank Fund

The FDIC is standing up the Mission-Driven Bank Fund to help mission-driven banks, FDIC-insured minority depository institutions (MDIs) and Community Development Financial Institutions (CDFIs), that support low- and moderate-income, minority, and rural communities. These banks:

  • Provide affordable financial products and services to individuals and businesses
  • Stimulate economic and community development
  • Build opportunity and prosperity

Support for these institutions helps them build size, scale, and capacity – enabling them to have a greater impact in the communities they serve.

The fund will provide a vehicle to channel private capital and other resources to mission-driven banks to:

  • Raise capital necessary to serve their communities more effectively
  • Weather the effects of economic downturns and recover more quickly
  • Attract technical expertise to grow their operations and expand their service
  • Acquire, deploy, and maintain technology solutions
  • Build capacity and scale

As of September 2021, the fund has two anchor investors and one founding investor who have committed a total of $120 million with additional investments expected. The anchor investors are hiring a fund manager and working towards a first closing in the fourth quarter of 2021 so that the fund can receive pitches from banks early in the first quarter of 2022.

The creation of the fund supports the FDIC’s commitment to preserving and promoting mission-driven institutions. The FDIC will retain an advisory role to support the fund’s mission focus, but will not contribute capital to, manage, or be involved in the investment decisions of, the fund.

“A significant part of my focus as FDIC Chairman has been bridging the economic inclusion gap. While we recognize there is no single solution to address disparities in our financial system, we know that many mission-driven banks are anchor institutions in minority, low-income, and rural communities. Together, we can support these institutions and the communities they serve by providing them with capital, technology, and innovation. The FDIC is excited to facilitate the creation of the Mission-Driven Bank Fund to play an important role in building economic opportunity in low-income, minority, and rural communities.”

Jelena McWilliams
FDIC Chairman

FDIC Chairman Jelena McWilliams

 

 

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