Summary:
On June 15, 2021, the Federal Deposit Insurance Corporation (FDIC) Board of Directors approved an updated Statement of Policy Regarding Minority Depository Institutions (Policy Statement) , which details the framework by which the FDIC implements the goals set forth in Section 308 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) . The 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.
This issuance establishes a process for an insured institution or applicant for deposit insurance to make a request that the FDIC recognize the institution as an MDI.
Statement of Applicability: The contents of, and material referenced in, this FIL apply to all FDIC–supervised financial institutions.
Highlights:
- The FDIC has long recognized the importance of MDIs and has historically taken steps to preserve and promote and encourage the creation of these insured financial institutions.
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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.
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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.