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FDIC Federal Register Citations

William X. Smith
Executive Vice President
Community Bank of the Bay
Oakland, CA

Proposed FDIC Regulation
Policy Statement Regarding Minority-Owned Depository Institutions
[Written Comments requested on or before March 4, 2002]

  Minority - Black American, Asian American, Hispanic American or Native American.

(Question: What about multi-racial individuals, i.e., Black American and German (Caucasian)

  1. 51% of voting stock owned by minority individuals - one minority group or a group of minority individuals. Note: Non-U.S. citizens will not count for ownership status. or

  2. Majority of Board of Directors, account holders and the community the institution serves are predominately minority, regardless of non-minority or non-U.S. citizen ownership, for mutual, publicly traded or widely held institutions.

(Questions: a. Definition of "majority"?; b. definition of "predominately"?; c. must all three (3) tests be met or will there be some latitude in application?; (4) What safeguards will be put in place to prevent "straw men" in reference to the Board of Directors?

Identification of Minority-Owned Institutions

    FDIC will maintain a LIST of federally insured minority-owned institutions.

    Examiners will review the accuracy of the LIST during the examination process for those institutions examined by the FDIC.

    Regional Office Case Managers will note changes to the LIST while processing deposit insurance applications, merger applications, change of control notices or failures of minority-owned institutions.

    FDIC will work closely with other Federal regulatory agencies to insure that institutions not directly supervised by the FDIC are accurately captured on the LIST.

    Institutions may themselves request designation as minority-owned if they meet the criteria; also, an institution may request not to be included on the LIST even if it qualifies.

    FDIC will periodically provide the LIST to and seek input on its accuracy from relevant trade associations.

(Question: Will the criteria for minority-owned designation be the same for institutions noted by other Federal regulatory agencies as that of the FDIC?)

Organizational Structure (for FDIC's minority-owned Institutions Program)

    A National Coordinator in the Washington Office

    A Regional Coordinator in each Regional Office

    Case Managers specifically assigned in each Regional Office will continue to be the institution's central point of contact.

Technical Assistance

    Through designated Case Manager, institutions can obtain assistance in understanding bank regulations, FDIC policies, examination procedures, the application process, etc.

    After examinations, FDIC will offer to have representatives return to the institution about 90 - 120 days later to review areas of concern or topics of interest to the institution.

Training and Educational Programs

    FDIC will work with / partner with trade associations representing minority-owned institutions to assess the need for and provide training and educational opportunities to the institutions.

(Question: Will FDIC assist in identifying appropriate (experience, integrity, etc.) management and other personnel for minority-owned institutions?)

Failing Institutions

    FDIC will provide notice of failing minority-owned institutions - and provide technical assistance regarding the bid process - on a national basis to minority-owned institutions that quality to bid on failing institutions.

    FDIC will maintain a list of minority-owned institutions that have expressed an interest in acquiring failing minority-owned institutions.

    FDIC will periodically contact trade associations representing minority-owned institutions (NBA, American League of Financial Institutions and North American Native Bankers Association) to help identify possible interested parties in acquiring failing minority-owned institutions.

(Question: Could FDIC also place minority-owned institutions that have expressed an interest in acquiring appropriately sized failing non-minority-owned financial institutions on its notification list?)


    FDIC's efforts to preserve and promote minority ownership of depository institutions will be highlighted in the FDIC's Annual Report. 

Internet Site

    FDIC will create a Web page to promote the minority-owned institution program [will include the name, phone number and e-mail address of the National Coordinator and each Regional Coordinator].

    The Web page will contain links to each minority-owned institution, pertinent trade associations and other regulatory agency programs.

(Question: Could FDIC set up a password protected link within the Web page so that prompt notification via e-mail could be made to minority-owned institutions identifying failing institutions?)

Last Updated 03/04/2002

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