- Federal Deposit Insurance Corporation establishes office to improve engagement with mission-driven banks such as CDFIs and MDIs
- FDIC describes such banks as providing a critical source of credit for minority-owned small businesses
- Office aims to promote private sector investments in low- and middle-income communities
Summary by Dirk Langeveld
The Federal Deposit Insurance Corporation has announced the creation of a new office to engage with mission-driven banks such as minority depository institutions and community development financial institutions. The Office of Minority and Community Development Banking aims to promote private sector investments in low- and middle-income communities.
“Mission-driven banks are the financial lifeblood of their communities, enabling individuals and minority-owned small businesses to securely build savings and obtain credit,” said FDIC Chairman Jelena McWilliams. “By establishing the Office of Minority and Community Development Banking, we expand our engagement and collaboration in support of these institutions as part of a broader commitment to increasing financial inclusion.”
McWilliams says the new office is the latest in an ongoing series of efforts at the FDCI to support mission-driven banks since 2018. These have included a fund to assist with capital investments at MDIs and CDFIs, the establishment of the MDI Subcommittee of the Advisory Committee on Community Banking, and roundtables to “facilitate the development of non-bank partnerships with MDIs for financial, lending, and technical support.”