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.