A new Office of Minority and Community Development Banking to support the agency’s ongoing engagement with minority depository institutions (MDIs), community development financial institutions (CDFIs), and other “mission-driven” banks was announced Tuesday by the chairman of the Federal Deposit Insurance Corp. (FDIC).
In Tuesday’s release, the FDIC said the new office “will further promote private sector investments in low- and moderate-income (LMI) communities.”
The release did not specify who will lead the new office or provide a timetable for designating that person.
“Mission-driven banks are the financial lifeblood of their communities, enabling individuals and minority-owned small businesses to securely build savings and obtain credit. 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 said in a statement.
Tuesday’s announcement lists the actions taken since 2018 by the agency, under McWilliams’ leadership, that focus on the agency’s MDI program. Among the most recent noted were the launch of the Mission-Driven Bank Fund, created to facilitate critical capital investments in FDIC-insured MDIs and CDFIs; and establishment of the MDI subcommittee of the agency’s Advisory Committee on Community Banking.