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Collaborative Relationships with Minority Depository Institutions

Risk Management Practices
December 22, 2017

Summary:

Insured depository institutions may realize business and regulatory benefits from partnerships and other collaborative relationships with minority depository institutions (MDIs). This Financial Institution Letter describes some of the ways that financial institutions, including community banks, can partner with MDIs to the benefit of all institutions involved, as well as the communities they serve.

Statement of Applicability to Institutions under $1 Billion in Total Assets: This Financial Institution Letter is applicable to all FDIC-supervised insured depository institutions.

Highlights:

  • Collaboration among MDIs or between MDIs and non-MDIs can provide viable options for sound and profitable lending and investments that meet the needs of underserved communities.
  • By collaborating with each other or with other community banks, MDIs may be able to enhance product and service offerings to unbanked and underbanked consumers located in low- to moderate-income geographies.
  • In many cases, institutions engaging in collaborative activities and partnerships with MDIs may receive Community Reinvestment Act (CRA) consideration for such activities.
  • Institutions interested in pursuing collaborative relationships with MDIs may contact the appropriate Regional Director or Regional MDI Coordinator for insight on possible collaboration opportunities with specific MDIs. Institutions may also pursue such collaborative opportunities directly.

Distribution:

  • FDIC-Supervised Financial Institutions

Suggested Routing:

  • Board of Directors
  • Chief Executive Officer
  • Chief Lending Officer

Note:

FDIC Financial Institution Letters (FILs) may be accessed from the FDIC's website at https://www.fdic.gov/news/financial-institution-letters/2017/.

To receive FILs electronically, please visit https://www.fdic.gov/about/subscriptions/fil.html.

Paper copies may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, E 1002, Arlington, VA 22226 (877-275-3342 or 703-562-2200).

Additional Related Topics:

  • Minority Depository Institutions
  • Lending
  • Investments
Attachment(s)
Collaboration with Minority Depository Institutions
Regional MDI Coordinators
Community Affairs Managers and Specialists
Related Topics
Community Reinvestment Act

Last Updated: December 22, 2017