A Financial Institution Letter (FIL) establishing the process for an insured banking institution or applicant for deposit insurance to request recognition by the federal bank deposit insurer as a minority depository institution (MDI) was announced Thursday.
The Federal Deposit Insurance Corp. (FDIC) said its board issued an updated policy regading MDIs in June 2021. This policy statement describes the FDIC’s framework and initiatives to fulfill its statutory goals with respect to MDIs. As noted in the Policy Statement, the FDIC will accept requests from entities for designation as an MDI.
The FIL highlights the following:
- FDIC supervised institutions or applicants for deposit insurance that seek to be recognized as an MDI may submit a written request, signed by a duly authorized officer or representative of the institution or applicant, at any time to the appropriate regional office.
- Institutions may also submit a request in connection with a merger application or a change in control notice.
- The request should contain sufficient information in support of the designation.
- If the submitted documentation indicates that the institution or applicant has met the eligibility requirements, the FDIC will send a letter acknowledging recognition of the institution as an MDI.
- The letter will describe the resources available through the MDI Program.
- The institution or applicant should maintain documentation supporting its continued eligibility for the MDI designation.