FDIC roundtable addresses minority depository institutions

Efforts to foster collaboration in support of minority depository institution’s (MDIs) continued vibrancy took center stage at a recent Federal Deposit Insurance Corporation (FDIC) roundtable event.

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“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,” FDIC Chairman Jelena McWilliams said.

The FDIC previously published a resource guide describing how insured depository institutions realize business and regulatory benefits by developing partnerships and other collaborative relationships with MDIs.

The roundtable was held in the wake of the 2019 Interagency MDI and CDFI Bank Conference, which the FDIC hosted in partnership with the Federal Reserve Board and the Office of the Comptroller of the Currency.

An FDIC-generated study outlined the essential role MDIs play in serving low and moderate-income customers, determining MDIs are important service providers to minority populations, which have higher percentages of unbanked households than other groups.

The FDIC seeks to pursue initiatives further promoting and supporting collaborative relationships between non-MDIs and MDIs, such as additional roundtables, clarification on how the relationships receive consideration under the Community Reinvestment Act, raising awareness among insured institutions and targeted training for agency examination staff.