June 27, 2019

FDIC: Agency Hosts Roundtable on Collaborations with Minority Depository Institutions

The Federal Deposit Insurance Corporation (FDIC) today hosted a roundtable with large FDIC-supervised banks and minority depository institutions (MDIs) to foster collaboration in support of the continued vibrancy of MDIs and their communities.

“Collaborative partnerships among large banks and MDIs are critically important not only for individual insured institutions, but also for their communities and the vitality of the overall financial system,” said FDIC Chairman Jelena McWilliams.

In December 2017, the FDIC published a resource guide that describes how insured depository institutions may realize business and regulatory benefits by developing partnerships and other collaborative relationships with MDIs. These partnerships can be strategic and beneficial for both large banks and MDIs.

Earlier this week, the FDIC published a research study, Minority Depository Institutions: Structure, Performance, and Social Impact, that outlines the essential role MDIs play in serving low- and moderate-income (LMI) customers. The study also shows that MDIs are important service providers to minority populations, which have higher percentages of unbanked households than other groups.

Building on its resource guide and research, the FDIC intends to pursue initiatives to further promote and support collaborative relationships between non-MDIs and MDIs, such as additional roundtables, clarification on how these relationships receive consideration under the Community Reinvestment Act, raising awareness among insured institutions, and targeted training for agency examination staff.

Today’s roundtable follows the 2019 Interagency MDI and CDFI Bank Conference held earlier in the week, which the FDIC hosted in partnership with the Federal Reserve Board and the Office of the Comptroller of the Currency.

For more information on the FDIC and MDIs, visit www.fdic.gov/mdi.Attachments:

This post was originally published here.