PRESS RELEASE
For Immediate Release
March 1, 2024
Beatty Introduces Legislation to Support Minority-Owned Banks Across America
WASHINGTON, DC – Yesterday, Congresswoman Beatty reintroduced the Expanding Opportunity for Minority Depository Institutions (MDIs) Act to codify the Financial Agent Mentor-Protégé Program at the U.S. Department of the Treasury. The program pairs up minority-owned banks with large financial institutions, providing resources, training, and technical assistance to help them better serve their communities and become Financial Agents to Treasury.
MDIs play a critical role in their communities, yet there are only 148 MDI banks left in the United States, and the number of minority-owned banks has dropped 32% since its peak in 2008. Although their numbers have largely stabilized in recent years, MDIs generally have much higher expenses and are often forced to merge with other minority-owned banks to survive.
“MDIs are anchor institutions that provide mortgage credit, small business lending, and other banking services to minority and low- and moderate-income (LMI) communities,” said Congresswoman Beatty. “Codifying the mentor-protégé program at Treasury will go a long way towards preserving and fortifying MDIs across America and take a meaningful step towards a more inclusive financial system.”
“Adelphi Bank, the only MDI in Central Ohio, is proud to endorse Congresswoman Beatty’s bill to support minority-owned banks across the United States,” said Jordan Miller, Chairman and CEO of Adelphi Bank. “MDI banks are on the frontlines of serving LMI, underserved, and minority communities, but we face significant hurdles in accessing capital and meeting the needs of our customers. This legislation to codify Treasury’s Financial Agent Mentor-Protégé Program is a critical first step towards uplifting these essential financial institutions.”
“The Independent Community Bankers of America (ICBA) appreciates Rep. Joyce Beatty’s continuous efforts to support minority depository institutions and other community banks,” said Rebeca Romero Rainey, ICBA President and CEO. “ICBA welcomes the reintroduction of the Expanding Opportunity for Minority Depository Institutions Act, which would codify Treasury’s Bank Mentor-Protégé Program, enabling MDIs and other community banks to partner with other financial institutions to bolster the relationship-lending business model in the communities we serve across the country.”
“The National Bankers Association (NBA) is pleased to support Congresswoman Joyce Beatty’s Expanding Opportunities for Minority Depository Institutions (MDIs) Act legislation, which would incorporate the Treasury’s Minority Bank Deposit Program to help direct deposits to many qualifying minority depository institutions,” said Nicole Elam, President and CEO of NBA. “Additionally, this legislation expands upon this work by establishing a new Financial Agent Mentor-Protégé Program, which will allow financial agents and large financial institutions to serve as mentors to community and minority banks to assist those institutions in improving their capacity to serve their communities and become financial agents themselves.”
“The American Bankers Association is pleased to support Rep. Beatty’s Expanding Opportunities for Minority Depository Institutions Act, which would bolster the ability of MDIs to provide critical financial services,” said Rob Nichols, ABA President and CEO. “By strengthening partnerships between large financial institutions and community and minority banks, this bill will provide significant benefit to customers and communities across the country.”
The legislation is cosponsored by Reps. Andre Carson (IN-07), Troy Carter (LA-02), Emanuel Cleaver (MO-05), Sylvia Garcia (TX-29), Al Green (TX-09), Sheila Jackson Lee (TX-18), Hank Johnson (GA-04), Barbara Lee (CA-12), Eleanor Holmes Norton (DC), Stacey Plaskett (VI), Delia Ramirez (IL-03), Jill Tokuda (HI-02), Bonnie Watson Coleman (NJ-12), and Nikema Williams (GA-05).
For inquiries, please contact Cassandra Johnson at Cassandra.Johnson@mail.house.gov.