OCC revises its minority depository institution definition

The OCC revised its definition of minority depository institutions and updated several related policies.

Details: The OCC said the updates:

• Replace references to specific OCC structures and resources with general directions that are unlikely to become obsolete.

• Revise its definition of an MDI to more closely align with the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) and base the definition more on the statutory definition while describing how the OCC may maintain the designation of current MDIs.

• Are consistent with President Donald Trump’s executive order implementing the Department of Government Efficiency.

Support for MDIs:

• ICBA last month urged the OCC to retain minority depository institutions on the list of examples of permissible public welfare investments so they can continue to advance public welfare by serving low- and moderate-income communities.

• The House of Representatives last month passed the ICBA-backed Mentor-Protégé Program for Small Financial Institutions Act (H.R. 3709), which would establish a Treasury Financial Agent program enabling partnerships between minority depository institutions, rural community banks, and other financial institutions.

• A recent Independent Banker magazine article details how MDIs and community development financial institutions have weathered funding cuts and regulatory shifts and continue to provide value to communities across the U.S.