On August 24, 2020, the FDIC Board of Directors proposed revisions to its Statement of Policy Regarding Minority Depository Institutions (MDIs) to better meet the goals of Section 308 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 to promote and encourage the creation of MDIs. According to the FDIC, the proposed revisions update, strengthen, and clarify the agency’s policies and procedures related to MDIs. Written comments are due on or before 60 days after publication in the Federal Register.
Among other things, the FDIC proposal would revise the Statement of Policy in the following areas:
- Technical Assistance and other Engagement – The proposal clarifies expectations for technical assistance and states that FDIC staff will not view requests for technical assistance negatively when evaluating institution performance or assigning ratings.
- FDIC Outreach – The proposal provides new outreach opportunities, including with the FDIC Chairman’s office and the National Director for Minority and Community Development Banking.
- Definitions – The proposal would add definitions for terms used in the MDI program, including technical assistance, training and education, and outreach.
- MDI Subcommittee – The proposal details a new FDIC MDI Subcommittee of the Advisory Committee on Community Banking, which would serve as a source of feedback on FDIC strategies to fulfill statutory goals to preserve and promote MDIs and provide a platform to promote collaboration among MDIs.