The Federal Deposit Insurance Corporation’s (FDIC) Board of Directors (FDIC) has approved a final Minority Depository Institutions (MDIs) Statement of Policy, noting the action bolsters preservation and promotion efforts.
MDIs and Community Development Financial Institutions (CDFIs) are banks, savings banks, and savings associations designed to serve minority, low- and moderate-income (LMI), and rural communities at higher rates than mainstream banks compared to their size. Additionally, the banks are commonly known as mission-driven banks.
Per the FDIC, the approval stems from public comment received in response to an August 2020 proposal, which updated, strengthened, and clarified policies and procedures in accordance with the present MDI framework while describing the FDIC’s actions to promote the preservation of MDIs and improving communication between the agency and minority-owned and managed institutions.
Chair Jelena McWilliams said the FDIC has sought to engage with MDIs and better understand the needs by providing technical assistance, in addition to hosting banker roundtables and networking events as a means of connecting MDIs and non-MDIs for potential business partnerships.
The FDIC has cited the Subcommittee to the Advisory Committee on Community Banking as a resource providing input on MDI program initiatives; a platform promoting collaboration, partnerships, and best practices; and a vehicle to identify methods to highlight the work of MDIs in communities.
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