FDIC Issues Guidance Regarding Investment Partnerships with Minority Depository Institutions and Community Development Financial Institutions

The Federal Deposit Insurance Corporation (FDIC) issued a new resource guide regarding private and philanthropic investment in Minority Depository Institutions (MDIs) and Community Development Financial Institutions (CDFIs).

MDIs and CDFIs are banks that generally serve minority, low- to moderate-income, and rural communities.  They are also known as “mission-driven banks,” as they are intended to providing banking and financial services to otherwise underserved communities.  The FDIC currently insures about 250 MDIs and CDFIs.  As these banks tend to have lower capitalization, even relatively small investments, grants, or other types of support by private or philanthropic entities can provide significant benefit towards their missions.

The resource guide provides information and suggestions about different ways for larger banks, private companies, and philanthropic organizations to partner with MDIs and CDFIs, and provides examples of some recent collaborations.