FDIC Publishes Resource Guide to Promote Investment Partnerships With FDIC-Insured Minority Banks and Community Development Financial Institutions
October 16, 2020 / Source: FDIC
WASHINGTON – The Federal Deposit Insurance Corporation (FDIC) today published a new resource guide to promote private and philanthropic investment partnerships with FDIC-insured Minority Depository Institutions (MDIs) and Community Development Financial Institution banks (CDFI banks). “Investing in the Future of Mission-Driven Banks” is FDIC’s latest effort to build supportive partnerships between these banks and other financial institutions, private companies and philanthropic organizations.
FDIC-insured MDIs and CDFI banks provide critically needed banking products and services to small businesses and individuals in minority and lower income communities in urban and rural areas that have traditionally lacked access to safe and affordable credit. Many of these institutions are small, and building capacity and scale are critical to growing their operations and expanding services to their communities.
There are approximately 250 MDIs and CDFI banks insured by the FDIC with combined capital of less than $40 billion. Consequently, modest investments at any one of these institutions can have an enormous impact on their operations and the communities they serve. Every dollar of equity capital invested can increase lending by a multiple of the original investment. Every dollar of deposits can only increase lending up to the amount of the deposit. In addition, grants and other investments may qualify for matching funds in existing support programs, and partnerships between private companies, philanthropic organizations, or other banks can greatly expand the investment from the original partner.
The FDIC has also created a MDI and CDFI Bank locator that includes every FDIC-insured mission-driven bank and branch in the country. Information includes bank type, location, and direct links to each bank.