NBA Responds to FDIC’s Newly Announced Office of Minority and Community Development Banking
WASHINGTON, D. C. – Today, the National Bankers Association released the following statement regarding the announcement by the Federal Deposit Insurance Corporation to address issues important to minority banks and the communities they serve.
“The National Bankers Association (NBA) applauds Chairman Jelena McWilliams and the Board of Directors of the Federal Deposit Insurance Corporation (FDIC) for its announcement of an Office of Minority and Community Development Banking. The NBA and its members are pleased with the swift action taken after calling on the government to create an office focused on addressing issues important to minority-owned and -operated banks and the communities they serve.
Taken together with Chairman McWilliams actions since 2018 and the Board’s earlier Statement of Policy aimed at enhancing the agency’s efforts to preserve and protect Minority Depository Institutions (MDIs), this effort demonstrates a continued commitment to preserve and enhance MDIs just a month after the announcement of the Mission-Driven Bank Fund.
It’s been thirty years since the current federal statute was enacted to preserve and protect MDIs under the Financial Institutions Reform, Recovery and Enforcement Act. Yet, much work remains to reverse the significant damage to minority communities and the steady decline of minority-owned banks. The Board’s actions to date are essential steps in the right direction toward accomplishing the critical purposes of the statute.
The NBA looks forward to bank examiners increasing their understanding of the unique operating environments associated with our member institutions’ economically distressed communities. We urge leaders of the prudential regulators to emphasize the current law’s mandate of collaboration and encouragement in the regulatory treatment of our banks, which have remained focused on achieving their missions while maintaining safe and sound institutions that protect the hard-earned resources of our customers.”