Statement of Policy Regarding Minority Depository Institutions, 32728-32734 [2021-12972]
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consumer financial law. The analysis
under section 1025(b)(1)(C) of the CFPA
is otherwise similar to that under
section 1024(b)(1)(C) of the CFPA, and
so there is no need to repeat it here.47
The Bureau recognizes the role of the
prudential regulators in conducting
MLA supervision, including
examinations, at very large banks and
credit unions. Applicable statutes grant
the prudential regulators broad
supervisory and examination powers,
which they use for various purposes,
including assuring the safety and
soundness of supervised institutions,
assuring compliance with laws and
regulations at those institutions, and
other purposes. By contrast, the
Bureau’s authority under section
1025(b)(1)(C) concerns a targeted
purpose: Detecting and assessing those
‘‘risks to consumers’’ that are
‘‘associated’’ with ‘‘activities subject to’’
Federal consumer financial laws, such
as TILA. Conducting examinations for
that particular purpose is distinct from
the prudential regulators’ authority to
conduct examinations for the purpose of
assessing compliance with the MLA (or
for safety and soundness or other
purposes) —including the fact that the
prudential regulators’ purposes are not
based on the association with Federal
consumer financial law discussed
above. Even though some of the
activities in Bureau examinations may
be similar to activities in prudential
regulators’ examinations, they are for a
different purpose. Nothing in the CFPA
or in this interpretive rule limits in any
way, or should be deemed to limit in
any way, the prudential regulators’
consumer compliance examinations of
very large banks or credit unions, or
their subsidiaries, for the purpose of
assessing compliance with the MLA.
Section 1025 has a number of
provisions that promote coordination
and efficiency among the Bureau and
the prudential regulators. The agencies
work with each other to minimize
regulatory burden that may result from
their complementary authorities, while
ensuring the efficient and effective
protection of covered borrowers.
V. Regulatory Matters
This is an interpretive rule issued
under the Bureau’s authority to interpret
the CFPA, including under section
1022(b)(1) of CFPA, which authorizes
guidance as may be necessary or
appropriate to enable the Bureau to
47 The Bureau’s previous concerns that it lacked
authority under section 1024(b)(1)(C) were also
applicable to section 1025(b)(1)(C). But for the
reasons already discussed in the context of section
1024(b)(1)(C), the Bureau no longer finds those
arguments persuasive.
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administer and carry out the purposes
and objectives of Federal consumer
financial laws, such as the CFPA.48
As an interpretive rule, this rule is
exempt from the notice-and-comment
rulemaking requirements of the
Administrative Procedure Act.49
Because no notice of proposed
rulemaking is required, the Regulatory
Flexibility Act does not require an
initial or final regulatory flexibility
analysis.50 The Bureau has also
determined that this interpretive rule
does not impose any new or revise any
existing recordkeeping, reporting, or
disclosure requirements on covered
entities or members of the public that
would be collections of information
requiring approval by the Office of
Management and Budget under the
Paperwork Reduction Act.51
Pursuant to the Congressional Review
Act,52 the Bureau will submit a report
containing this interpretive rule and
other required information to the United
States Senate, the United States House
of Representatives, and the Comptroller
General of the United States prior to the
rule’s published effective date. The
Office of Information and Regulatory
Affairs has designated this interpretive
rule as not a ‘‘major rule’’ as defined by
5 U.S.C. 804(2).
Dated: June 16, 2021.
David Uejio,
Acting Director, Bureau of Consumer
Financial Protection.
[FR Doc. 2021–13074 Filed 6–22–21; 8:45 am]
BILLING CODE 4810–AM–P
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Chapter III
RIN 3064–ZA19
Statement of Policy Regarding Minority
Depository Institutions
Federal Deposit Insurance
Corporation (FDIC).
ACTION: Final statement of policy.
AGENCY:
The FDIC is issuing its
Statement of Policy Regarding Minority
Depository Institutions. Section 308 of
the Financial Institutions Reform,
Recovery and Enforcement Act of 1989
established several goals related to
encouraging, assisting, and preserving
minority depository institutions. The
FDIC has long recognized the unique
SUMMARY:
48 12
U.S.C. 5512(b)(1).
U.S.C. 553(b).
50 5 U.S.C. 603(a), 604(a).
51 44 U.S.C. 3501–3521.
52 5 U.S.C. 801 et seq.
49 5
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role and importance of minority
depository institutions and historically
has taken steps to preserve and
encourage minority-owned and
minority-led financial institutions. The
Statement of Policy updates,
strengthens, and clarifies the agency’s
policies and procedures related to
minority depository institutions.
DATES: The Statement of Policy is
effective August 23, 2021.
FOR FURTHER INFORMATION CONTACT:
Misty Mobley, Senior Review Examiner,
Division of Risk Management and
Supervision, (202) 898–3771,
mimobley@fdic.gov; Lauren Whitaker,
Senior Attorney, (202) 898–3872,
lwhitaker@fdic.gov; Jason Pan, Senior
Attorney, (202) 898–7272, jpan@
fdic.gov; or Gregory Feder, Counsel,
(202) 898–8724, gfeder@fdic.gov, Legal
Division, Federal Deposit Insurance
Corporation, 550 17th Street NW,
Washington, DC 20429. For the hearing
impaired only, TDD users may contact
(202) 925–4618.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
II. The Proposed Statement of Policy
A. Proposed Revisions
B. Comments
III. Final Statement of Policy Regarding
Minority Depository Institutions
IV. Administrative Matters
I. Background
Section 308 of the Financial
Institutions Reform, Recovery, and
Enforcement Act of 1989 (FIRREA) 1
established several goals related to
minority depository institutions (MDIs):
(1) Preserving the number of MDIs; (2)
preserving the minority character in
cases of merger or acquisition; (3)
providing technical assistance to
prevent insolvency of institutions not
now insolvent; (4) promoting and
encouraging creation of new MDIs; and
(5) providing for training, technical
assistance, and education programs.
On April 3, 1990, the Board of
Directors of the Federal Deposit
Insurance Corporation (FDIC Board and
FDIC, respectively) adopted the Policy
Statement on Encouragement and
Preservation of Minority Ownership of
Financial Institutions (1990 Policy
Statement). The framework for the 1990
Policy Statement resulted from key
provisions contained in Section 308 of
FIRREA. The 1990 Policy Statement
provided information to the public and
minority banking industry regarding the
1 Public Law 101–73, title III, § 308, Aug. 9, 1989,
103 Stat. 353, as amended by Public Law 111–203,
title III, § 367(4), July 21, 2010, 124 Stat. 1556,
codified at 12 U.S.C. 1463 note.
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agency’s efforts in achieving the goals of
Section 308.
During the 1990s, many MDIs
continued to underperform industry
averages for profitability and experience
failure rates that were significantly
higher than those of the industry
overall. In order to discuss the
challenges that MDIs faced, and identify
best practices and possible ways the
regulatory agencies could promote and
preserve MDIs, the FDIC and other
banking regulatory agencies—with
assistance from several minority bank
trade associations—invited officers from
156 MDIs to participate in a ‘‘Bankers
and Supervisors Regulatory Forum’’
held in March of 2001. Approximately
70 bankers attended.
The FDIC also formed an
Interdivisional Working Group to
consider measures to modernize the
policies and procedures related to MDIs.
The working group incorporated many
suggestions from the March 2001 forum
into a revised Policy Statement
Regarding Minority Depository
Institutions, issued by the FDIC, after
notice and comment, in April of 2002
(2002 Policy Statement).2 The FDIC
issued the 2002 Policy Statement to
provide additional information
regarding the FDIC’s initiatives related
to Section 308. The 2002 Policy
Statement provided a more structured
framework that set forth initiatives of
the FDIC to promote the preservation of,
as well as to provide technical
assistance, training, and educational
programs for, MDIs by working with
those institutions, their trade
associations, and the other federal
financial regulatory agencies.
Over the years, the FDIC has
continued to modify and enhance its
MDI program to better carry out the
FDIC’s efforts to meet the goals in
Section 308 of FIRREA. The revisions in
the proposed Statement of Policy are
intended, in part, to strengthen and
improve the various aspects of the MDI
program and how each component of
the MDI program is carried out by
various responsible entities that are part
of the MDI program. The proposed
revisions to the 2002 Policy Statement
reflected in the proposed Statement of
Policy describe the FDIC’s enduring and
strengthened commitment to, and
engagement with, MDIs in furtherance
of its goal of preserving and promoting
MDIs.
In 2019, the FDIC established a new
MDI Subcommittee of the Advisory
Committee on Community Banking
(CBAC). The MDI Subcommittee held its
inaugural meeting in December 2019.
2 67
FR 18618 (Apr. 16, 2002).
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There are nine executives serving as
members of the MDI Subcommittee,
representing African American, Native
American, Hispanic American, and
Asian American MDIs across the
country. The MDI Subcommittee
provides recommendations regarding
the FDIC’s MDI program to the CBAC for
consideration. The MDI Subcommittee
serves as a source of feedback with
regard to the FDIC’s efforts to fulfill its
statutory goals to preserve and promote
MDIs; provides a platform for MDIs to
promote collaboration, partnerships,
and best practices; and identifies ways
to highlight the work of MDIs in their
communities.
The FDIC published, also in 2019, an
MDI research study, which explores
changes in MDIs, their role in the
financial services industry, and their
impact on the communities they serve.3
The study period covered 2001 to 2018
and looked at the demographics,
structural change, geography, financial
performance, and social impact of MDIs.
Additionally, to discuss the
challenges that MDIs face, provide
information on best practices, and
collaborate on possible ways the
regulatory agencies can promote and
preserve MDIs, in June of 2019, the
FDIC hosted the Interagency MDI and
Community Development Financial
Institution (CDFI) Bank Conference,
Focus on the Future: Prospering in a
Changing Industry, in collaboration
with the Office of the Comptroller of
Currency and the Board of Governors of
the Federal Reserve System. More than
80 MDI and CDFI bankers, representing
61 banks, attended the two-day
conference.4
All of these various efforts by the
FDIC to enhance its MDI program have
informed the proposed revisions to the
Statement of Policy. The FDIC has
received suggestions from bankers at
outreach and trade association meetings
as well as feedback from the June 2019
conference. The MDI Subcommittee has
also provided feedback to the CBAC for
consideration and recommendation to
the FDIC. Many of these suggestions and
feedback have been incorporated into
the revised Statement of Policy. The
following section summarizes the
significant changes from the 2002 Policy
Statement.
3 See FDIC MDI research study, published June
2019, Minority Depository Institutions: Structure,
Performance, and Social Impact, https://
www.fdic.gov/regulations/resources/minority/2019mdi-study/full.pdf.
4 See Chairman Jelena McWilliams Keynote
Remarks, MDI and Community Development
Financial Institution bank conference, Focus on the
Future: Prospering in a Changing Industry (Mar. 3,
2020), https://www.youtube.com/
watch?v=o0H6Ko00qTk&feature=youtu.be.
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II. The Revised Policy Statement
A. Proposed Revisions
On September 25, 2020, the FDIC
published in the Federal Register
proposed revisions to its MDI Policy
Statement.5 The FDIC proposed changes
in the following seven areas:
Technical assistance and other
engagement. The proposed Statement of
Policy clarified that technical assistance
is not a supervisory activity and is not
intended to present additional
regulatory burden. Further, the
proposed Statement of Policy stated that
examination teams will not view
requests for, or acceptance of, technical
assistance negatively when evaluating
institution performance or assigning
ratings.
FDIC outreach. The proposed
Statement of Policy was updated to
provide additional outreach
opportunities, including with the
Chairman’s office and the National
Director for Minority and Community
Development Banking.
MDI Subcommittee. The proposed
Statement of Policy described the newly
established FDIC MDI Subcommittee of
the CBAC, which serves as source of
feedback on FDIC strategies to fulfill
statutory goals to preserve and promote
MDIs. The MDI Subcommittee may also
make recommendations or offer ideas to
the CBAC for consideration and
presentation to the FDIC. The MDI
Subcommittee provides a platform for
MDIs to promote collaboration,
partnerships, and best practices. The
MDI Subcommittee also identifies ways
to highlight the work of MDIs in their
communities.
Definitions. The proposed Statement
of Policy added definitions for terms
used in the MDI program: Technical
assistance; training and education; and
outreach. Technical assistance is
defined as individual assistance that a
regulator will provide to a MDI in
response to an institution’s request for
assistance in addressing specific areas of
concern. The proposed Statement of
Policy also noted that technical
assistance is a tool to provide on-going
support to institutions in an effort to
facilitate timely implementation of
recommendations, full understanding of
regulatory requirements, and in some
instances, the viability of the institution.
Training and education programs
consist of instruction designed to impart
proficiency or skills related to a
particular job, process, or regulatory
policy. This training and education can
be provided in person, through
webinars or conference calls, or in a
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conference setting. Outreach consists of
FDIC representatives meeting with
financial institutions with a primary
focus of building relationships and open
communication and providing
information and resources. Outreach is
generally offered by the FDIC and can
include meetings between financial
institution management and senior FDIC
management.
Reporting. The proposed Statement of
Policy reflects updated reporting
requirements applicable to the FDIC,
including the Annual Report to
Congress on the Preservation and
Promotion of Minority Depository
Institutions pursuant to Section 367 of
the Dodd-Frank Wall Street Reform and
Consumer Protection Act of 2010 and
Section 308 of FIRREA. The Section 367
requirements were enacted since the
Statement of Policy was last updated in
2002.
Measurement of effectiveness. The
proposed Statement of Policy also
established new requirements to
measure the effectiveness of the MDI
program. The National Director and the
regional office staff will routinely solicit
feedback from MDIs to assess the
effectiveness of the FDIC’s technical
assistance, training and education, and
outreach efforts and the MDI program in
general. The FDIC will track instances of
technical assistance, training and
education, and outreach and solicit
feedback on the effectiveness of these
activities by administering periodic
surveys and holding discussions with
bank management.
Examinations. The proposed
Statement of Policy added a description
of how the FDIC applies rating systems
to examinations of MDIs. Specifically,
the proposed Statement of Policy
described how the Uniform Financial
Rating System (UFIRS) and the Uniform
Interagency Consumer Compliance
Rating System (UICCR) are designed to
reflect an assessment of the individual
institution, including its size and
sophistication, the nature and
complexity of its business activities, and
its risk profile rather than a comparison
to peer institutions
B. Comments
The FDIC sought comment generally
on the proposed revisions to the
Statement of Policy and asked six
specific questions regarding aspects of
the proposal. Seven comment letters
were received.6 The comments came
6 See Comments received for proposed revisions
to Statement of Policy Regarding Minority
Depository Institutions, available at https://
www.fdic.gov/regulations/laws/federal/2020/2020statement-of-policy-minority-depositoryinstitutions-3064-za19.html.
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from an insured financial institution, a
financial institution trade organization,
a non-profit organization, a service
provider that serves minority depository
institutions, and individuals.
Commenters generally supported the
proposed revisions to the Statement of
Policy, however, some commenters also
made specific recommendations to the
Statement of Policy. These comments
are discussed in more detail below. The
FDIC is making one change to the
Statement of Policy in response to
comments received.
The FDIC received several comments
on the methods described in the
Statement of Policy that would be used
to identify and provide useful
engagement opportunities. One
commenter suggested that additional
technical assistance could be provided
to MDIs in danger of failing. After
consideration of this comment, the FDIC
has decided not to make any related
changes to the Statement of Policy. The
FDIC already seeks to preserve the
minority character of failing institutions
before and during the resolution
process, as required by Section 308 of
FIRREA. Further, the FDIC provides
ongoing supervisory oversight of
institutions prior to failure through
regular on-site examinations, visitations,
off-site monitoring, and various offers to
provide technical assistance.
One commenter requested that the
Statement of Policy more explicitly state
that outreach will include national and
state banking industry trade
associations. Another commenter
suggested that collaboration with state
banking agencies might enhance
program content, delivery, and reach.
Such collaboration already is
contemplated by the Statement of
Policy, so no changes are necessary.
However, the FDIC agrees that it would
be useful to explicitly include national
and state bankers associations among
the various external organizations with
whom the FDIC will discuss
opportunities to collaborate, the
challenges faced by MDIs, and other
topics, and has made a change to the
Statement of Policy to reflect such
outreach.
One group of academics suggested
that MDI resources be centralized in a
single location. This commenter further
recommended that the burden of
requesting services should be
transferred from the MDIs to FDIC staff
in Regional and Field offices. The FDIC
suggests that the current structure of the
MDI program, with a National Director
and staff in the FDIC’s Washington
Office, Regional Coordinators in each of
the FDIC’s six Regional Offices, and
additional staff in 82 Field Offices
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spread across the country, all available
to respond to questions and to provide
technical assistance, works well to
provide resources to MDIs. The FDIC
also assigns to every FDIC-supervised
institution, of any size or ownership
form, a case manager and a review
examiner who are available for all
supervisory activities or inquiries. The
FDIC believes it is better to meet the
needs of MDIs where they are, rather
than in a central location, and has not
made a change in response to these
comments.
The same commenter suggested more
could be done to reach out to MDIs and
those in the process of organizing de
novo MDIs, specifically recommending
an annual informational conference for
entrepreneurs seeking to enter the
industry. The FDIC has in place a
number of initiatives to assist existing
and potential future MDIs. Regional
Directors and their staff work with MDI
organizers to help them understand
application requirements and processes,
and provide technical assistance
throughout the process. This work
includes the National Director’s office
and senior Regional management in the
MDI organizer’s respective region,
hosting conference calls with the
organizer addressing questions
regarding MDI designation and other
topics. The FDIC currently is developing
videos targeted at entrepreneurs and
others seeking to establish an MDI. The
Statement of Policy is intended to
provide general principles and
commitments from the FDIC regarding
the MDI program. In order for the
Statement of Policy to be a living
document that allows the FDIC to
prioritize different initiatives and to
move away from unsuccessful efforts,
the Statement of Policy does not include
many details about specific initiatives.
The FDIC takes notice of the
commenter’s suggestion, but has not
revised the Statement of Policy.
The FDIC received several comments
on the definitions included within the
Statement of Policy. Two commenters
suggested that the FDIC should broaden
MDI eligibility in the Statement of
Policy to include women-led
institutions. One of these commenters
specifically recommended that the FDIC
should consider implementing a
requirement that in order for an
institution to obtain MDI status, they
must have at least a minimum of two
women on their executive leadership
boards. The FDIC, in response, notes
that the Statement of Policy closely
follows the statutory definitions of
‘‘minority depository institution’’ and
‘‘minority’’ set forth in Section 308 of
FIRREA, which does not include
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women-owned or women-led
institutions. Minority depository
institutions have very unique challenges
and serve distinct communities. The
primary purpose of the FDIC’s MDI
program is to promote and preserve
these institutions and develop resources
specific to the needs of these
institutions.
Another commenter recommended
that the FDIC define the term
‘‘predominantly minority’’ in the
context of a community the institution
serves. The FDIC has established MDI
Designation Assessment Procedures,
which will be published and included
in the publicly available Application
Procedures Manual. These procedures
provide the criteria that must be met by
institutions seeking the MDI
designation. The procedures also
describe the FDIC’s process for assessing
an institution’s eligibility for the
designation. These procedures include
steps for performing an assessment of
the community served by the
institution, consisting partly of a review
of the minority population in the
institution’s target area.
The FDIC also received comments
specifically relating to the definitions
assigned to technical assistance,
education, and outreach. One
commenter recommended that the FDIC
interpret as broadly as possible the
specific instances within each category
(technical assistance, training and
education, outreach) which will likely
benefit MDIs. In measuring the
effectiveness of the MDI program, the
FDIC regularly solicits comments from
MDIs regarding the usefulness and
quality of technical assistance, outreach,
and education and training efforts of the
FDIC. The FDIC thus has developed an
understanding of, and will continue to
assess, the most beneficial resources
made available to institutions. The
definitions in the Statement of Policy
provide the FDIC with the flexibility to
meet the evolving needs of the MDI
program and will not be changed.
Regarding the term ‘‘technical
assistance,’’ the FDIC received a
comment suggesting that the FDIC use
the term ‘‘professional consultation’’ in
place of ‘‘technical assistance’’ to
encourage working relationships with
MDI executives. The FDIC responds that
the term ‘‘technical assistance’’ is
widely used throughout the banking
industry and specifically set forth in
Section 308 of FIRREA. The FDIC has
not received any comments from
institutions indicating they have any
concerns with the term itself. Many
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institutions use the technical assistance
and other resources, such as outreach,
made available by the FDIC and have
found the resources beneficial as they
address challenges or require
clarification on supervisory
recommendations and processes as well
as laws and regulations.
The same commenter noted that the
proposed Statement of Policy provides a
statement regarding the supervisory
impact of requests for, or acceptance of,
technical assistance. The commenter
noted that, while its member
institutions did not perceive a negative
impact that served as a barrier to
seeking technical assistance, the
proposed clarification is laudable.
One commenter recommended that
the FDIC consider whether MDIs might
benefit from a clearly stated supervisory
impact from participating in outreach
activities similar to the statement
included in the technical assistance
definition, noting that technical
assistance is not a supervisory activity.
The FDIC has not received any feedback
from MDI management indicating any
perceived reluctance to communicate
freely during outreach activities.
Further, the FDIC understands the
importance of developing strong
working relationships with institution
management, the development of which
requires open communication. The
FDIC encourages participants of all
outreach activities to communicate any
recommendations, questions, or
concerns without worry of repercussion.
The FDIC received several comments
on the types of information regarding
the MDI program that would be useful
to include in annual reports or the MDI
program website. One commenter
suggested, to encourage MDIs to use
resources offered by the FDIC more
fully, that the FDIC’s annual report
should highlight the FDIC’s efforts in
establishing new MDIs, success stories
with growing MDIs, how the FDIC has
assisted struggling MDIs, and, in the
event of a failure, how the minority
focus of the failed MDI has been
retained by the acquiring institution.
The FDIC does, and will continue to,
highlight achievements made by MDIs
within the Annual Report to Congress
and other publications featuring the
activities of MDIs. These publications
will also capture supervisory activities
promoting the creation of new MDIs,
including the support provided during
the de novo application process.
One commenter suggested the FDIC
research the potential impact of MDIs
on rural areas and how to successfully
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scale MDIs in rural areas. While not
described in the proposed Statement of
Policy, the FDIC considers the most
pertinent studies for MDIs and the
banking industry as a whole, as well as
the timing of such research. The
commenter also suggested the FDIC’s
website organization should be designed
for users such as entrepreneurs, new
managers of MDIs, growing MDIs, and
faltering MDIs. The FDIC is updating the
MDI program website to expand the
scope of information contained therein.
The FDIC will develop informational
videos promoting the creation of MDIs
and providing education on applying for
deposit insurance and obtaining the
MDI designation. As noted above, the
FDIC is developing videos specifically
for entrepreneurs and other parties
interested in establishing a de novo
MDI.
One commenter recommended the
FDIC clarify whether the intended use
of the results from periodic surveys and
discussions with bank management will
be shared with the MDI Subcommittee,
the FDIC’s Board, and the general
public. The FDIC notes that the results
of the effectiveness survey and
comments provided by institution
management informs the MDI program
on key areas where the MDI program
has been successful and areas where the
FDIC can improve program delivery.
These findings and discussions
strengthen the MDI program by
identifying key resources that have been
or could be beneficial to institutions.
The findings of the survey are shared
with the MDI Subcommittee, CBAC, and
the FDIC Board. The FDIC may consider
including summary survey information
in the Annual Report to Congress.
The FDIC received comments on
methods to identify and provide
technical assistance, outreach, and
training education and resources that
would be beneficial to minority
depository institutions. One commenter
suggested expanding the training and
educational programs portion of the
Engagement with MDIs section of the
Statement of Policy to specifically
include virtual environments and the
services of private organizations in
order to ensure that MDIs have a wide
variety of solutions to meet their needs.
The FDIC develops training material on
laws, regulations, and guidance
pertinent to the financial institutions it
supervises. Any private companies
interested in providing training to MDIs
can contact trade associations or
institutions directly.
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One commenter suggested the FDIC
facilitate training and education through
written materials, such as manuals or
whitepapers. The FDIC is evaluating
options for additional training and
education resources. The FDIC will
engage the MDI Subcommittee to seek
its ideas on topics and alternative
methods of providing training and
education material.
Finally, one commenter urged the
FDIC to play a larger role in addressing
the challenges facing minority
communities, including racial gaps in
financial and economic opportunity.
The Statement of Policy focuses on
strategies to facilitate the viability of
MDIs to enable MDIs to serve their
communities. As noted above, the FDIC
recognizes the importance of the
broader societal issues and, indeed, is
taking steps to address them, but
revisions to the rules implementing the
Community Reinvestment Act,
enforcing the law against predatory
lenders, and bank staff diversity are
beyond the scope of the Statement of
Policy.
III. Final Statement of Policy Regarding
Minority Depository Institutions
The text of the Statement of Policy
follows:
The FDIC has long recognized the
importance of minority depository
institutions in the financial system and
their unique role in promoting the
economic viability of minority and
under-served communities. The FDIC
historically has implemented programs
to preserve and promote these financial
institutions. This Statement of Policy
describes the framework the FDIC has
put into place and the initiatives the
FDIC will undertake to fulfill its
statutory goals with respect to minority
depository institutions (MDI Program).
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Statutory Framework
In August 1989, Congress enacted the
Financial Institutions Reform, Recovery,
and Enforcement Act of 1989 (FIRREA).
Section 308 of FIRREA established the
following goals:
• Preserve the number of minority
depository institutions;
• Preserve the minority character in
cases of merger or acquisition;
• Provide technical assistance to
prevent insolvency of institutions not
now insolvent;
• Promote and encourage creation of
new minority depository institutions;
and
• Provide for training, technical
assistance, and educational programs.
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Definitions
Organizational Structure
Section 308 of FIRREA defines
‘‘minority depository institution’’ as any
federally insured depository institution
where 51 percent or more of the voting
stock is owned by one or more ‘‘socially
and economically disadvantaged
individuals.’’ ‘‘Minority,’’ as defined by
Section 308 of FIRREA, means any
‘‘Black American, Native American,
Hispanic American, or Asian
American.’’ Therefore, for the purposes
of this Statement of Policy, ‘‘minority
depository institution’’ is defined as any
federally insured depository institution
where 51 percent or more of the voting
stock is owned by minority individuals.
This includes institutions collectively
owned by a group of minority
individuals, such as a Native American
tribe. Ownership must be by U.S.
citizens or permanent legal U.S.
residents to be counted in determining
minority ownership. In addition to the
institutions that meet the ownership
test, for the purposes of this Statement
of Policy, institutions will be considered
minority depository institutions if a
majority of the Board of Directors
consists of minority individuals and the
community that the institution serves is
predominantly minority.
The FDIC has designated a national
director for the FDIC’s MDI program in
the Washington Office and a regional
coordinator in each Regional Office. The
national director will consult with
officials from the following FDIC
Divisions to ensure appropriate
personnel are involved and resources
are made available with regard to MDI
program initiatives: Division of Risk
Management Supervision, Division of
Depositor and Consumer Protection,
Division of Resolutions and
Receiverships, Division of Insurance
and Research, Legal Division, and the
Office of Minority and Women
Inclusion. The national director will
also consult with other organizations
within the FDIC as appropriate.
As the primary federal regulator for
State nonmember banks and State
savings associations, the FDIC will focus
its efforts on minority depository
institutions with those charters.
However, the national director will meet
periodically with the other federal
banking regulators to discuss each
agency’s outreach efforts, to share ideas,
and to identify opportunities where the
agencies can work together to assist
minority depository institutions.
Representatives of other divisions and
offices may participate in these
meetings.
Identification of Minority Depository
Institutions
To ensure that all minority depository
institutions are able to participate in the
MDI program, the FDIC will maintain a
list of federally insured minority
depository institutions. Institutions that
are not already identified as minority
depository institutions can request to be
designated as such by certifying that
they meet the above definition. For
institutions supervised directly by the
FDIC, examiners will review the
appropriateness of their inclusion on
the list during the examination process.
In addition, case managers in regional
offices will note changes to the list
while processing deposit insurance
applications, merger applications,
change of control notices, or failures of
minority depository institutions. The
FDIC will work closely with the other
federal banking regulators to capture
accurately on the list institutions not
directly supervised by the FDIC. In
addition, the FDIC will periodically
provide the list to relevant trade
associations and seek input regarding
the accuracy of the list. Inclusion in the
FDIC’s MDI program is voluntary. Any
minority depository institution not
wishing to participate in the MDI
program will be removed from the
official list upon request.
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Engagement With Minority Depository
Institutions
The FDIC’s MDI program will provide
for continual engagement with minority
depository institutions through ongoing
interaction with the Washington,
Regional, and Field Office staff. This
interaction includes providing technical
assistance to share information and
expertise on supervisory topics,
outreach initiatives to provide
opportunities for open dialogue with
senior FDIC staff, and training
initiatives to offer opportunities to gain
additional knowledge about specific
regulatory requirements.
Further, trade associations affiliated
with minority depository institutions
serve as a significant resource in
identifying specific interests or concerns
for those institutions. The national
director will regularly contact minority
depository institution trade associations
to seek feedback on the FDIC’s efforts
under the MDI program, discuss
possible training initiatives, and explore
options for promoting and preserving
minority depository institutions. The
national director and the regional
coordinators also will solicit
information from trade associations,
including national and state bankers’
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associations, and other organizations
about groups that may be interested in
establishing new minority depository
institutions. FDIC representatives will
be available to address such groups to
discuss the application process, the
requirements of becoming FDIC insured,
and the various programs supporting
minority depository institutions. The
regional coordinators will contact all
new minority state nonmember banks
and state savings associations identified
through insurance applications, merger
applications, or change in control
notices to familiarize the institutions
with the resources available through the
MDI program.
Technical Assistance
Technical assistance, as defined by
the FDIC’s MDI program, is individual
assistance that a regulator will provide
to a minority depository institution in
response to an institution’s request for
assistance in understanding supervisory
topics or findings. At any time, the FDIC
will share information and expertise
with bank management on various
topics including, but not limited to,
understanding bank regulations, FDIC
policies, examination procedures,
accounting practices, supervisory
recommendations, risk management
procedures, and compliance
management procedures. In providing
technical assistance, FDIC staff will not
actually perform tasks expected of an
institution’s management or employees.
For example, FDIC staff may explain
Call Report instructions as they relate to
specific accounts, but will not assist in
preparing an institution’s Call Report.
FDIC staff may provide information on
community reinvestment opportunities,
but will not recommend a specific
transaction.
An institution can contact its field
office representatives, case manager, or
review examiner to request technical
assistance. In addition, the regional
coordinators and the institution’s
assigned case manager and review
examiner are knowledgeable about
minority bank issues and are available
to answer questions or to direct
inquiries to the appropriate FDIC office
or staff member with expertise on the
subject for response. Case managers can
explain the application process and the
type of analysis and information
required for different applications. Field
office representatives also serve as a
significant resource to minority
depository institutions by readily
answering examination related
questions and explaining regulatory
requirements. Other staff members
within the FDIC with expertise in
various regulatory topics will also be
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available to share knowledge to assist
minority depository institutions in
complying with regulations or
implementing supervisory
recommendations.
During examinations, the FDIC
expects examiners to fully explain
supervisory recommendations and offer
to help management understand
satisfactory methods to address such
recommendations. At the conclusion of
each examination of a minority
depository institution directly
supervised by the FDIC, the FDIC will
be available to return to the institution
to provide technical assistance by
reviewing areas of concern or topics of
interest to the institution. The purpose
of return visits is to assist management
in understanding and implementing
examination recommendations, not to
identify new problems.
Technical assistance is a tool to
provide on-going support to institutions
in an effort to ensure timely
implementation of recommendations,
full understanding of regulatory
requirements, and in some instances,
the viability of the institution. Technical
assistance is not a supervisory activity
and is not intended to present
additional regulatory burden. Further,
examination teams will not view
requests for, or acceptance of, technical
assistance negatively when evaluating
institution performance or assigning
ratings.
Outreach
Outreach, as defined by the FDIC’s
MDI program, consists of FDIC
representatives meeting with financial
institutions with a primary focus of
building relationships and open
communication and providing
information and resources. Outreach is
generally offered by the FDIC and can
include meetings between financial
institution management and senior FDIC
management.
The FDIC maintains an MDI
Subcommittee of its Advisory
Committee on Community Banking
(CBAC) composed of executives of
minority depository institutions. The
MDI Subcommittee serves as a source of
feedback on FDIC strategies to fulfill
statutory goals to preserve and promote
minority depository institutions. The
MDI Subcommittee may also make
recommendations or offer ideas to the
CBAC for consideration and
presentation to the FDIC. The MDI
Subcommittee provides a platform for
minority depository institutions to
promote collaboration, partnerships,
and best practices. The Subcommittee
will also identify ways to highlight the
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32733
work of minority depository institutions
in their communities.
Executives and staff in the FDIC’s
regional offices will communicate
regularly with each minority depository
institution to outline the FDIC’s efforts
to promote and preserve minority
depository institutions; will offer
annually to have a member of regional
management meet with the institution’s
board of directors to discuss issues of
interest, including through roundtable
discussions and training sessions; and
will seek input regarding any training or
other technical assistance the institution
may desire.
The FDIC will explore opportunities
to facilitate collaboration and partnering
initiatives among minority depository
institutions or between minority
depository institutions and nonminority depository institutions. The
FDIC recognizes that by facilitating
these collaborative relationships,
institutions can have opportunities to
better meet the needs of their
communities.
Training and Educational Programs
Training and educational programs, as
defined by the FDIC’s MDI program,
consist of instruction designed to impart
proficiency or skills related to a
particular job, process, or regulatory
policy. The FDIC will work with other
banking regulatory agencies and trade
associations representing minority
depository institutions to periodically
assess the need for, and provide for,
training and educational opportunities.
The FDIC will partner with other federal
banking agencies and trade associations
to offer training programs. This training
and education can be provided in
person, through webinars or conference
calls, or in a conference setting.
Reporting
The regional coordinators will report
regional office activities related to the
MDI program to the national director
quarterly. The national director will
develop a comprehensive report on all
MDI program activities and submit the
report quarterly to the Chairman. The
FDIC’s efforts to preserve and promote
minority depository institutions will
also be highlighted in the FDIC’s
Annual Report and the Annual Report
to Congress on the Preservation and
Promotion of Minority Depository
Institutions pursuant to Section 367 of
the Dodd-Frank Wall Street Reform and
Consumer Protection Act of 2010 and
Section 308 of FIRREA.
Measuring Program Effectiveness
The national director and the regional
office staff will routinely solicit
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feedback from minority depository
institutions to assess the effectiveness of
the FDIC’s technical assistance,
outreach, and training/education efforts
and the MDI program in general. The
FDIC will track instances of technical
assistance, outreach, and training and
education and solicit feedback on the
effectiveness of these activities by
administering periodic surveys and
holding discussions with bank
management.
Examinations
All insured institutions must be
operated in a safe and sound manner, in
accordance with FDIC’s regulations.
Likewise, all examinations must be
conducted within the parameters of
FDIC exam policies and should
consistently measure the risk an
institution poses to the FDIC’s deposit
insurance fund. Notwithstanding, and
consistent with the Uniform Financial
Institutions Rating System (UFIRS) and
the Uniform Interagency Consumer
Compliance Rating System (UICCR),
examiners are expected to recognize the
distinctive characteristics and
differences in core objectives of each
financial institution and to consider
those unique factors when evaluating an
institution’s financial condition and risk
management practices.
Under the UFIRS and UICCR, each
financial institution is assigned a
composite rating based on an evaluation
of specific components, which are also
rated. For UFIRS, these component
ratings reflect an institution’s capital
adequacy, asset quality, management
capabilities, earnings sufficiency,
liquidity position, and sensitivity to
market risk (commonly referred to as the
CAMELS ratings). Likewise, the UICCR
is organized under broad components
that assess the institution’s board and
management oversight, compliance
program, violations of law, and
consumer harm. The uniform rating
systems and evaluation and rating
criteria are specific to the examination
types performed. Further, the
assignment of the rating is based solely
on the subject institution’s individual
performance under the specific
components.
Management practices, particularly as
they relate to risk management, vary
considerably among financial
institutions depending on size and
sophistication, the nature and
complexity of business activities, and
risk profile. Each institution must
properly manage risks and have
appropriate policies, processes, or
practices in place that management
follows and uses. Activities undertaken
in a less complex institution engaging in
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less sophisticated risk-taking activities
may need only basic management and
control systems compared to the
detailed and formalized systems and
controls used for the broader and more
complex range of activities undertaken
at a larger and more complex
institution.
Peer comparison data are not
included in the rating systems. The
principal reason is to avoid over
reliance on statistical comparisons to
justify the component rating being
assigned. Avoiding such overreliance is
very important when evaluating
minority depository institutions due to
their unique characteristics. For
example, many minority depository
institutions were established to serve an
otherwise under-served market. High
profitability may not be as essential to
the organizers and shareholders of the
institution. Instead, community
development, improving consumer
services, and promoting banking
services to the unbanked or underbanked segment of its community may
drive many of the organization’s
decisions. The UFIRS allows for
consideration of the characteristics by
considering not only the level of an
institution’s earnings, but also the trend
and stability of earnings, the ability to
provide for adequate capital, the quality
and sources of earnings, and the
adequacy of budgeting systems.
Examiners are instructed to consider
all relevant factors when assigning a
component rating. The rating systems
are designed to reflect an assessment of
the individual institution, including its
size and sophistication, the nature and
complexity of its business activities, and
risk profile.
Failing Institutions
The FDIC will attempt to preserve the
minority character of failing institutions
during the resolution process. In the
event of a potential failure of a minority
depository institution, the Division of
Resolutions and Receiverships will
contact all minority depository
institutions nationwide that qualify to
bid on failing institutions. The Division
of Resolutions and Receiverships will
solicit qualified minority depository
institutions’ interest in the failing
institution, discuss the bidding process,
and offer to provide technical assistance
regarding completion of the bid forms.
In addition, the Division of Resolutions
and Receiverships, with assistance from
the Office of Minority and Women
Inclusion, will maintain a list of
minority individuals and nonbank
entities that have expressed an interest
in acquiring failing minority depository
institutions and have been pre-approved
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by the Division of Risk Management
Supervision and the chartering
authority for access to the FDIC’s virtual
data room for online due diligence.
Internet Site
The FDIC will maintain a website to
promote the MDI program. Among other
things, the website will describe the
tools and resources available under the
program. The website will include the
name, phone number, and email address
of the national director, each regional
coordinator, and additional staff. The
website will also contain links to the list
of minority depository institutions,
pertinent trade associations, and other
federal agency programs. The FDIC will
also explore the feasibility and
usefulness of posting other items to the
page, such as statistical information and
comparative data for minority
depository institutions. Visitors will
have the opportunity to provide
feedback regarding the FDIC’s program
and the usefulness of the website.
IV. Administrative Law Matters
The Paperwork Reduction Act of 1995
(PRA) 7 states that no agency may
conduct or sponsor, and no respondent
is required to respond to, an information
collection unless it displays a currently
valid Office of Management and Budget
(OMB) control number.
The Statement of Policy Regarding
Minority Depository Institutions does
not create any new or revise any
existing information collections
pursuant to the PRA. Rather, any
reporting, recordkeeping, or disclosure
activities mentioned in the Statement of
Policy Regarding Minority Depository
Institutions are usual and customary
and should occur in the normal course
of business as defined in the PRA.8
Consequently, no submissions will be
made to the OMB for review. No
comments were received regarding PRA
or other burdens.
Federal Deposit Insurance Corporation.
By order of the Board of Directors.
Dated at Washington, DC, on June 15, 2021.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2021–12972 Filed 6–22–21; 8:45 am]
BILLING CODE 6714–01–P
7 44
85
U.S.C. 3501, et seq.
CFR 1320.3(b)(2).
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]]>Agencies
[Federal Register Volume 86, Number 118 (Wednesday, June 23, 2021)]
[Rules and Regulations]
[Pages 32728-32734]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-12972]
=======================================================================
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FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Chapter III
RIN 3064-ZA19
Statement of Policy Regarding Minority Depository Institutions
AGENCY: Federal Deposit Insurance Corporation (FDIC).
ACTION: Final statement of policy.
-----------------------------------------------------------------------
SUMMARY: The FDIC is issuing its Statement of Policy Regarding Minority
Depository Institutions. Section 308 of the Financial Institutions
Reform, Recovery and Enforcement Act of 1989 established several goals
related to encouraging, assisting, and preserving minority depository
institutions. The FDIC has long recognized the unique role and
importance of minority depository institutions and historically has
taken steps to preserve and encourage minority-owned and minority-led
financial institutions. The Statement of Policy updates, strengthens,
and clarifies the agency's policies and procedures related to minority
depository institutions.
DATES: The Statement of Policy is effective August 23, 2021.
FOR FURTHER INFORMATION CONTACT: Misty Mobley, Senior Review Examiner,
Division of Risk Management and Supervision, (202) 898-3771,
[email protected]; Lauren Whitaker, Senior Attorney, (202) 898-3872,
[email protected]; Jason Pan, Senior Attorney, (202) 898-7272,
[email protected]; or Gregory Feder, Counsel, (202) 898-8724,
[email protected], Legal Division, Federal Deposit Insurance Corporation,
550 17th Street NW, Washington, DC 20429. For the hearing impaired
only, TDD users may contact (202) 925-4618.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
II. The Proposed Statement of Policy
A. Proposed Revisions
B. Comments
III. Final Statement of Policy Regarding Minority Depository
Institutions
IV. Administrative Matters
I. Background
Section 308 of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 (FIRREA) \1\ established several goals related
to minority depository institutions (MDIs): (1) Preserving the number
of MDIs; (2) preserving the minority character in cases of merger or
acquisition; (3) providing technical assistance to prevent insolvency
of institutions not now insolvent; (4) promoting and encouraging
creation of new MDIs; and (5) providing for training, technical
assistance, and education programs.
---------------------------------------------------------------------------
\1\ Public Law 101-73, title III, Sec. 308, Aug. 9, 1989, 103
Stat. 353, as amended by Public Law 111-203, title III, Sec.
367(4), July 21, 2010, 124 Stat. 1556, codified at 12 U.S.C. 1463
note.
---------------------------------------------------------------------------
On April 3, 1990, the Board of Directors of the Federal Deposit
Insurance Corporation (FDIC Board and FDIC, respectively) adopted the
Policy Statement on Encouragement and Preservation of Minority
Ownership of Financial Institutions (1990 Policy Statement). The
framework for the 1990 Policy Statement resulted from key provisions
contained in Section 308 of FIRREA. The 1990 Policy Statement provided
information to the public and minority banking industry regarding the
[[Page 32729]]
agency's efforts in achieving the goals of Section 308.
During the 1990s, many MDIs continued to underperform industry
averages for profitability and experience failure rates that were
significantly higher than those of the industry overall. In order to
discuss the challenges that MDIs faced, and identify best practices and
possible ways the regulatory agencies could promote and preserve MDIs,
the FDIC and other banking regulatory agencies--with assistance from
several minority bank trade associations--invited officers from 156
MDIs to participate in a ``Bankers and Supervisors Regulatory Forum''
held in March of 2001. Approximately 70 bankers attended.
The FDIC also formed an Interdivisional Working Group to consider
measures to modernize the policies and procedures related to MDIs. The
working group incorporated many suggestions from the March 2001 forum
into a revised Policy Statement Regarding Minority Depository
Institutions, issued by the FDIC, after notice and comment, in April of
2002 (2002 Policy Statement).\2\ The FDIC issued the 2002 Policy
Statement to provide additional information regarding the FDIC's
initiatives related to Section 308. The 2002 Policy Statement provided
a more structured framework that set forth initiatives of the FDIC to
promote the preservation of, as well as to provide technical
assistance, training, and educational programs for, MDIs by working
with those institutions, their trade associations, and the other
federal financial regulatory agencies.
---------------------------------------------------------------------------
\2\ 67 FR 18618 (Apr. 16, 2002).
---------------------------------------------------------------------------
Over the years, the FDIC has continued to modify and enhance its
MDI program to better carry out the FDIC's efforts to meet the goals in
Section 308 of FIRREA. The revisions in the proposed Statement of
Policy are intended, in part, to strengthen and improve the various
aspects of the MDI program and how each component of the MDI program is
carried out by various responsible entities that are part of the MDI
program. The proposed revisions to the 2002 Policy Statement reflected
in the proposed Statement of Policy describe the FDIC's enduring and
strengthened commitment to, and engagement with, MDIs in furtherance of
its goal of preserving and promoting MDIs.
In 2019, the FDIC established a new MDI Subcommittee of the
Advisory Committee on Community Banking (CBAC). The MDI Subcommittee
held its inaugural meeting in December 2019. There are nine executives
serving as members of the MDI Subcommittee, representing African
American, Native American, Hispanic American, and Asian American MDIs
across the country. The MDI Subcommittee provides recommendations
regarding the FDIC's MDI program to the CBAC for consideration. The MDI
Subcommittee serves as a source of feedback with regard to the FDIC's
efforts to fulfill its statutory goals to preserve and promote MDIs;
provides a platform for MDIs to promote collaboration, partnerships,
and best practices; and identifies ways to highlight the work of MDIs
in their communities.
The FDIC published, also in 2019, an MDI research study, which
explores changes in MDIs, their role in the financial services
industry, and their impact on the communities they serve.\3\ The study
period covered 2001 to 2018 and looked at the demographics, structural
change, geography, financial performance, and social impact of MDIs.
---------------------------------------------------------------------------
\3\ See FDIC MDI research study, published June 2019, Minority
Depository Institutions: Structure, Performance, and Social Impact,
https://www.fdic.gov/regulations/resources/minority/2019-mdi-study/full.pdf.
---------------------------------------------------------------------------
Additionally, to discuss the challenges that MDIs face, provide
information on best practices, and collaborate on possible ways the
regulatory agencies can promote and preserve MDIs, in June of 2019, the
FDIC hosted the Interagency MDI and Community Development Financial
Institution (CDFI) Bank Conference, Focus on the Future: Prospering in
a Changing Industry, in collaboration with the Office of the
Comptroller of Currency and the Board of Governors of the Federal
Reserve System. More than 80 MDI and CDFI bankers, representing 61
banks, attended the two-day conference.\4\
---------------------------------------------------------------------------
\4\ See Chairman Jelena McWilliams Keynote Remarks, MDI and
Community Development Financial Institution bank conference, Focus
on the Future: Prospering in a Changing Industry (Mar. 3, 2020),
https://www.youtube.com/watch?v=o0H6Ko00qTk&feature=youtu.be.
---------------------------------------------------------------------------
All of these various efforts by the FDIC to enhance its MDI program
have informed the proposed revisions to the Statement of Policy. The
FDIC has received suggestions from bankers at outreach and trade
association meetings as well as feedback from the June 2019 conference.
The MDI Subcommittee has also provided feedback to the CBAC for
consideration and recommendation to the FDIC. Many of these suggestions
and feedback have been incorporated into the revised Statement of
Policy. The following section summarizes the significant changes from
the 2002 Policy Statement.
II. The Revised Policy Statement
A. Proposed Revisions
On September 25, 2020, the FDIC published in the Federal Register
proposed revisions to its MDI Policy Statement.\5\ The FDIC proposed
changes in the following seven areas:
---------------------------------------------------------------------------
\5\ 85 FR 60466 (Sept. 25, 2020).
---------------------------------------------------------------------------
Technical assistance and other engagement. The proposed Statement
of Policy clarified that technical assistance is not a supervisory
activity and is not intended to present additional regulatory burden.
Further, the proposed Statement of Policy stated that examination teams
will not view requests for, or acceptance of, technical assistance
negatively when evaluating institution performance or assigning
ratings.
FDIC outreach. The proposed Statement of Policy was updated to
provide additional outreach opportunities, including with the
Chairman's office and the National Director for Minority and Community
Development Banking.
MDI Subcommittee. The proposed Statement of Policy described the
newly established FDIC MDI Subcommittee of the CBAC, which serves as
source of feedback on FDIC strategies to fulfill statutory goals to
preserve and promote MDIs. The MDI Subcommittee may also make
recommendations or offer ideas to the CBAC for consideration and
presentation to the FDIC. The MDI Subcommittee provides a platform for
MDIs to promote collaboration, partnerships, and best practices. The
MDI Subcommittee also identifies ways to highlight the work of MDIs in
their communities.
Definitions. The proposed Statement of Policy added definitions for
terms used in the MDI program: Technical assistance; training and
education; and outreach. Technical assistance is defined as individual
assistance that a regulator will provide to a MDI in response to an
institution's request for assistance in addressing specific areas of
concern. The proposed Statement of Policy also noted that technical
assistance is a tool to provide on-going support to institutions in an
effort to facilitate timely implementation of recommendations, full
understanding of regulatory requirements, and in some instances, the
viability of the institution. Training and education programs consist
of instruction designed to impart proficiency or skills related to a
particular job, process, or regulatory policy. This training and
education can be provided in person, through webinars or conference
calls, or in a
[[Page 32730]]
conference setting. Outreach consists of FDIC representatives meeting
with financial institutions with a primary focus of building
relationships and open communication and providing information and
resources. Outreach is generally offered by the FDIC and can include
meetings between financial institution management and senior FDIC
management.
Reporting. The proposed Statement of Policy reflects updated
reporting requirements applicable to the FDIC, including the Annual
Report to Congress on the Preservation and Promotion of Minority
Depository Institutions pursuant to Section 367 of the Dodd-Frank Wall
Street Reform and Consumer Protection Act of 2010 and Section 308 of
FIRREA. The Section 367 requirements were enacted since the Statement
of Policy was last updated in 2002.
Measurement of effectiveness. The proposed Statement of Policy also
established new requirements to measure the effectiveness of the MDI
program. The National Director and the regional office staff will
routinely solicit feedback from MDIs to assess the effectiveness of the
FDIC's technical assistance, training and education, and outreach
efforts and the MDI program in general. The FDIC will track instances
of technical assistance, training and education, and outreach and
solicit feedback on the effectiveness of these activities by
administering periodic surveys and holding discussions with bank
management.
Examinations. The proposed Statement of Policy added a description
of how the FDIC applies rating systems to examinations of MDIs.
Specifically, the proposed Statement of Policy described how the
Uniform Financial Rating System (UFIRS) and the Uniform Interagency
Consumer Compliance Rating System (UICCR) are designed to reflect an
assessment of the individual institution, including its size and
sophistication, the nature and complexity of its business activities,
and its risk profile rather than a comparison to peer institutions
B. Comments
The FDIC sought comment generally on the proposed revisions to the
Statement of Policy and asked six specific questions regarding aspects
of the proposal. Seven comment letters were received.\6\ The comments
came from an insured financial institution, a financial institution
trade organization, a non-profit organization, a service provider that
serves minority depository institutions, and individuals. Commenters
generally supported the proposed revisions to the Statement of Policy,
however, some commenters also made specific recommendations to the
Statement of Policy. These comments are discussed in more detail below.
The FDIC is making one change to the Statement of Policy in response to
comments received.
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\6\ See Comments received for proposed revisions to Statement of
Policy Regarding Minority Depository Institutions, available at
https://www.fdic.gov/regulations/laws/federal/2020/2020-statement-of-policy-minority-depository-institutions-3064-za19.html.
---------------------------------------------------------------------------
The FDIC received several comments on the methods described in the
Statement of Policy that would be used to identify and provide useful
engagement opportunities. One commenter suggested that additional
technical assistance could be provided to MDIs in danger of failing.
After consideration of this comment, the FDIC has decided not to make
any related changes to the Statement of Policy. The FDIC already seeks
to preserve the minority character of failing institutions before and
during the resolution process, as required by Section 308 of FIRREA.
Further, the FDIC provides ongoing supervisory oversight of
institutions prior to failure through regular on-site examinations,
visitations, off-site monitoring, and various offers to provide
technical assistance.
One commenter requested that the Statement of Policy more
explicitly state that outreach will include national and state banking
industry trade associations. Another commenter suggested that
collaboration with state banking agencies might enhance program
content, delivery, and reach. Such collaboration already is
contemplated by the Statement of Policy, so no changes are necessary.
However, the FDIC agrees that it would be useful to explicitly include
national and state bankers associations among the various external
organizations with whom the FDIC will discuss opportunities to
collaborate, the challenges faced by MDIs, and other topics, and has
made a change to the Statement of Policy to reflect such outreach.
One group of academics suggested that MDI resources be centralized
in a single location. This commenter further recommended that the
burden of requesting services should be transferred from the MDIs to
FDIC staff in Regional and Field offices. The FDIC suggests that the
current structure of the MDI program, with a National Director and
staff in the FDIC's Washington Office, Regional Coordinators in each of
the FDIC's six Regional Offices, and additional staff in 82 Field
Offices spread across the country, all available to respond to
questions and to provide technical assistance, works well to provide
resources to MDIs. The FDIC also assigns to every FDIC-supervised
institution, of any size or ownership form, a case manager and a review
examiner who are available for all supervisory activities or inquiries.
The FDIC believes it is better to meet the needs of MDIs where they
are, rather than in a central location, and has not made a change in
response to these comments.
The same commenter suggested more could be done to reach out to
MDIs and those in the process of organizing de novo MDIs, specifically
recommending an annual informational conference for entrepreneurs
seeking to enter the industry. The FDIC has in place a number of
initiatives to assist existing and potential future MDIs. Regional
Directors and their staff work with MDI organizers to help them
understand application requirements and processes, and provide
technical assistance throughout the process. This work includes the
National Director's office and senior Regional management in the MDI
organizer's respective region, hosting conference calls with the
organizer addressing questions regarding MDI designation and other
topics. The FDIC currently is developing videos targeted at
entrepreneurs and others seeking to establish an MDI. The Statement of
Policy is intended to provide general principles and commitments from
the FDIC regarding the MDI program. In order for the Statement of
Policy to be a living document that allows the FDIC to prioritize
different initiatives and to move away from unsuccessful efforts, the
Statement of Policy does not include many details about specific
initiatives. The FDIC takes notice of the commenter's suggestion, but
has not revised the Statement of Policy.
The FDIC received several comments on the definitions included
within the Statement of Policy. Two commenters suggested that the FDIC
should broaden MDI eligibility in the Statement of Policy to include
women-led institutions. One of these commenters specifically
recommended that the FDIC should consider implementing a requirement
that in order for an institution to obtain MDI status, they must have
at least a minimum of two women on their executive leadership boards.
The FDIC, in response, notes that the Statement of Policy closely
follows the statutory definitions of ``minority depository
institution'' and ``minority'' set forth in Section 308 of FIRREA,
which does not include
[[Page 32731]]
women-owned or women-led institutions. Minority depository institutions
have very unique challenges and serve distinct communities. The primary
purpose of the FDIC's MDI program is to promote and preserve these
institutions and develop resources specific to the needs of these
institutions.
Another commenter recommended that the FDIC define the term
``predominantly minority'' in the context of a community the
institution serves. The FDIC has established MDI Designation Assessment
Procedures, which will be published and included in the publicly
available Application Procedures Manual. These procedures provide the
criteria that must be met by institutions seeking the MDI designation.
The procedures also describe the FDIC's process for assessing an
institution's eligibility for the designation. These procedures include
steps for performing an assessment of the community served by the
institution, consisting partly of a review of the minority population
in the institution's target area.
The FDIC also received comments specifically relating to the
definitions assigned to technical assistance, education, and outreach.
One commenter recommended that the FDIC interpret as broadly as
possible the specific instances within each category (technical
assistance, training and education, outreach) which will likely benefit
MDIs. In measuring the effectiveness of the MDI program, the FDIC
regularly solicits comments from MDIs regarding the usefulness and
quality of technical assistance, outreach, and education and training
efforts of the FDIC. The FDIC thus has developed an understanding of,
and will continue to assess, the most beneficial resources made
available to institutions. The definitions in the Statement of Policy
provide the FDIC with the flexibility to meet the evolving needs of the
MDI program and will not be changed.
Regarding the term ``technical assistance,'' the FDIC received a
comment suggesting that the FDIC use the term ``professional
consultation'' in place of ``technical assistance'' to encourage
working relationships with MDI executives. The FDIC responds that the
term ``technical assistance'' is widely used throughout the banking
industry and specifically set forth in Section 308 of FIRREA. The FDIC
has not received any comments from institutions indicating they have
any concerns with the term itself. Many institutions use the technical
assistance and other resources, such as outreach, made available by the
FDIC and have found the resources beneficial as they address challenges
or require clarification on supervisory recommendations and processes
as well as laws and regulations.
The same commenter noted that the proposed Statement of Policy
provides a statement regarding the supervisory impact of requests for,
or acceptance of, technical assistance. The commenter noted that, while
its member institutions did not perceive a negative impact that served
as a barrier to seeking technical assistance, the proposed
clarification is laudable.
One commenter recommended that the FDIC consider whether MDIs might
benefit from a clearly stated supervisory impact from participating in
outreach activities similar to the statement included in the technical
assistance definition, noting that technical assistance is not a
supervisory activity. The FDIC has not received any feedback from MDI
management indicating any perceived reluctance to communicate freely
during outreach activities. Further, the FDIC understands the
importance of developing strong working relationships with institution
management, the development of which requires open communication. The
FDIC encourages participants of all outreach activities to communicate
any recommendations, questions, or concerns without worry of
repercussion.
The FDIC received several comments on the types of information
regarding the MDI program that would be useful to include in annual
reports or the MDI program website. One commenter suggested, to
encourage MDIs to use resources offered by the FDIC more fully, that
the FDIC's annual report should highlight the FDIC's efforts in
establishing new MDIs, success stories with growing MDIs, how the FDIC
has assisted struggling MDIs, and, in the event of a failure, how the
minority focus of the failed MDI has been retained by the acquiring
institution. The FDIC does, and will continue to, highlight
achievements made by MDIs within the Annual Report to Congress and
other publications featuring the activities of MDIs. These publications
will also capture supervisory activities promoting the creation of new
MDIs, including the support provided during the de novo application
process.
One commenter suggested the FDIC research the potential impact of
MDIs on rural areas and how to successfully scale MDIs in rural areas.
While not described in the proposed Statement of Policy, the FDIC
considers the most pertinent studies for MDIs and the banking industry
as a whole, as well as the timing of such research. The commenter also
suggested the FDIC's website organization should be designed for users
such as entrepreneurs, new managers of MDIs, growing MDIs, and
faltering MDIs. The FDIC is updating the MDI program website to expand
the scope of information contained therein. The FDIC will develop
informational videos promoting the creation of MDIs and providing
education on applying for deposit insurance and obtaining the MDI
designation. As noted above, the FDIC is developing videos specifically
for entrepreneurs and other parties interested in establishing a de
novo MDI.
One commenter recommended the FDIC clarify whether the intended use
of the results from periodic surveys and discussions with bank
management will be shared with the MDI Subcommittee, the FDIC's Board,
and the general public. The FDIC notes that the results of the
effectiveness survey and comments provided by institution management
informs the MDI program on key areas where the MDI program has been
successful and areas where the FDIC can improve program delivery. These
findings and discussions strengthen the MDI program by identifying key
resources that have been or could be beneficial to institutions. The
findings of the survey are shared with the MDI Subcommittee, CBAC, and
the FDIC Board. The FDIC may consider including summary survey
information in the Annual Report to Congress.
The FDIC received comments on methods to identify and provide
technical assistance, outreach, and training education and resources
that would be beneficial to minority depository institutions. One
commenter suggested expanding the training and educational programs
portion of the Engagement with MDIs section of the Statement of Policy
to specifically include virtual environments and the services of
private organizations in order to ensure that MDIs have a wide variety
of solutions to meet their needs. The FDIC develops training material
on laws, regulations, and guidance pertinent to the financial
institutions it supervises. Any private companies interested in
providing training to MDIs can contact trade associations or
institutions directly.
[[Page 32732]]
One commenter suggested the FDIC facilitate training and education
through written materials, such as manuals or whitepapers. The FDIC is
evaluating options for additional training and education resources. The
FDIC will engage the MDI Subcommittee to seek its ideas on topics and
alternative methods of providing training and education material.
Finally, one commenter urged the FDIC to play a larger role in
addressing the challenges facing minority communities, including racial
gaps in financial and economic opportunity. The Statement of Policy
focuses on strategies to facilitate the viability of MDIs to enable
MDIs to serve their communities. As noted above, the FDIC recognizes
the importance of the broader societal issues and, indeed, is taking
steps to address them, but revisions to the rules implementing the
Community Reinvestment Act, enforcing the law against predatory
lenders, and bank staff diversity are beyond the scope of the Statement
of Policy.
III. Final Statement of Policy Regarding Minority Depository
Institutions
The text of the Statement of Policy follows:
The FDIC has long recognized the importance of minority depository
institutions in the financial system and their unique role in promoting
the economic viability of minority and under-served communities. The
FDIC historically has implemented programs to preserve and promote
these financial institutions. This Statement of Policy describes the
framework the FDIC has put into place and the initiatives the FDIC will
undertake to fulfill its statutory goals with respect to minority
depository institutions (MDI Program).
Statutory Framework
In August 1989, Congress enacted the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (FIRREA). Section 308 of FIRREA
established the following goals:
Preserve the number of minority depository institutions;
Preserve the minority character in cases of merger or
acquisition;
Provide technical assistance to prevent insolvency of
institutions not now insolvent;
Promote and encourage creation of new minority depository
institutions; and
Provide for training, technical assistance, and
educational programs.
Definitions
Section 308 of FIRREA defines ``minority depository institution''
as any federally insured depository institution where 51 percent or
more of the voting stock is owned by one or more ``socially and
economically disadvantaged individuals.'' ``Minority,'' as defined by
Section 308 of FIRREA, means any ``Black American, Native American,
Hispanic American, or Asian American.'' Therefore, for the purposes of
this Statement of Policy, ``minority depository institution'' is
defined as any federally insured depository institution where 51
percent or more of the voting stock is owned by minority individuals.
This includes institutions collectively owned by a group of minority
individuals, such as a Native American tribe. Ownership must be by U.S.
citizens or permanent legal U.S. residents to be counted in determining
minority ownership. In addition to the institutions that meet the
ownership test, for the purposes of this Statement of Policy,
institutions will be considered minority depository institutions if a
majority of the Board of Directors consists of minority individuals and
the community that the institution serves is predominantly minority.
Identification of Minority Depository Institutions
To ensure that all minority depository institutions are able to
participate in the MDI program, the FDIC will maintain a list of
federally insured minority depository institutions. Institutions that
are not already identified as minority depository institutions can
request to be designated as such by certifying that they meet the above
definition. For institutions supervised directly by the FDIC, examiners
will review the appropriateness of their inclusion on the list during
the examination process. In addition, case managers in regional offices
will note changes to the list while processing deposit insurance
applications, merger applications, change of control notices, or
failures of minority depository institutions. The FDIC will work
closely with the other federal banking regulators to capture accurately
on the list institutions not directly supervised by the FDIC. In
addition, the FDIC will periodically provide the list to relevant trade
associations and seek input regarding the accuracy of the list.
Inclusion in the FDIC's MDI program is voluntary. Any minority
depository institution not wishing to participate in the MDI program
will be removed from the official list upon request.
Organizational Structure
The FDIC has designated a national director for the FDIC's MDI
program in the Washington Office and a regional coordinator in each
Regional Office. The national director will consult with officials from
the following FDIC Divisions to ensure appropriate personnel are
involved and resources are made available with regard to MDI program
initiatives: Division of Risk Management Supervision, Division of
Depositor and Consumer Protection, Division of Resolutions and
Receiverships, Division of Insurance and Research, Legal Division, and
the Office of Minority and Women Inclusion. The national director will
also consult with other organizations within the FDIC as appropriate.
As the primary federal regulator for State nonmember banks and
State savings associations, the FDIC will focus its efforts on minority
depository institutions with those charters. However, the national
director will meet periodically with the other federal banking
regulators to discuss each agency's outreach efforts, to share ideas,
and to identify opportunities where the agencies can work together to
assist minority depository institutions. Representatives of other
divisions and offices may participate in these meetings.
Engagement With Minority Depository Institutions
The FDIC's MDI program will provide for continual engagement with
minority depository institutions through ongoing interaction with the
Washington, Regional, and Field Office staff. This interaction includes
providing technical assistance to share information and expertise on
supervisory topics, outreach initiatives to provide opportunities for
open dialogue with senior FDIC staff, and training initiatives to offer
opportunities to gain additional knowledge about specific regulatory
requirements.
Further, trade associations affiliated with minority depository
institutions serve as a significant resource in identifying specific
interests or concerns for those institutions. The national director
will regularly contact minority depository institution trade
associations to seek feedback on the FDIC's efforts under the MDI
program, discuss possible training initiatives, and explore options for
promoting and preserving minority depository institutions. The national
director and the regional coordinators also will solicit information
from trade associations, including national and state bankers'
[[Page 32733]]
associations, and other organizations about groups that may be
interested in establishing new minority depository institutions. FDIC
representatives will be available to address such groups to discuss the
application process, the requirements of becoming FDIC insured, and the
various programs supporting minority depository institutions. The
regional coordinators will contact all new minority state nonmember
banks and state savings associations identified through insurance
applications, merger applications, or change in control notices to
familiarize the institutions with the resources available through the
MDI program.
Technical Assistance
Technical assistance, as defined by the FDIC's MDI program, is
individual assistance that a regulator will provide to a minority
depository institution in response to an institution's request for
assistance in understanding supervisory topics or findings. At any
time, the FDIC will share information and expertise with bank
management on various topics including, but not limited to,
understanding bank regulations, FDIC policies, examination procedures,
accounting practices, supervisory recommendations, risk management
procedures, and compliance management procedures. In providing
technical assistance, FDIC staff will not actually perform tasks
expected of an institution's management or employees. For example, FDIC
staff may explain Call Report instructions as they relate to specific
accounts, but will not assist in preparing an institution's Call
Report. FDIC staff may provide information on community reinvestment
opportunities, but will not recommend a specific transaction.
An institution can contact its field office representatives, case
manager, or review examiner to request technical assistance. In
addition, the regional coordinators and the institution's assigned case
manager and review examiner are knowledgeable about minority bank
issues and are available to answer questions or to direct inquiries to
the appropriate FDIC office or staff member with expertise on the
subject for response. Case managers can explain the application process
and the type of analysis and information required for different
applications. Field office representatives also serve as a significant
resource to minority depository institutions by readily answering
examination related questions and explaining regulatory requirements.
Other staff members within the FDIC with expertise in various
regulatory topics will also be available to share knowledge to assist
minority depository institutions in complying with regulations or
implementing supervisory recommendations.
During examinations, the FDIC expects examiners to fully explain
supervisory recommendations and offer to help management understand
satisfactory methods to address such recommendations. At the conclusion
of each examination of a minority depository institution directly
supervised by the FDIC, the FDIC will be available to return to the
institution to provide technical assistance by reviewing areas of
concern or topics of interest to the institution. The purpose of return
visits is to assist management in understanding and implementing
examination recommendations, not to identify new problems.
Technical assistance is a tool to provide on-going support to
institutions in an effort to ensure timely implementation of
recommendations, full understanding of regulatory requirements, and in
some instances, the viability of the institution. Technical assistance
is not a supervisory activity and is not intended to present additional
regulatory burden. Further, examination teams will not view requests
for, or acceptance of, technical assistance negatively when evaluating
institution performance or assigning ratings.
Outreach
Outreach, as defined by the FDIC's MDI program, consists of FDIC
representatives meeting with financial institutions with a primary
focus of building relationships and open communication and providing
information and resources. Outreach is generally offered by the FDIC
and can include meetings between financial institution management and
senior FDIC management.
The FDIC maintains an MDI Subcommittee of its Advisory Committee on
Community Banking (CBAC) composed of executives of minority depository
institutions. The MDI Subcommittee serves as a source of feedback on
FDIC strategies to fulfill statutory goals to preserve and promote
minority depository institutions. The MDI Subcommittee may also make
recommendations or offer ideas to the CBAC for consideration and
presentation to the FDIC. The MDI Subcommittee provides a platform for
minority depository institutions to promote collaboration,
partnerships, and best practices. The Subcommittee will also identify
ways to highlight the work of minority depository institutions in their
communities.
Executives and staff in the FDIC's regional offices will
communicate regularly with each minority depository institution to
outline the FDIC's efforts to promote and preserve minority depository
institutions; will offer annually to have a member of regional
management meet with the institution's board of directors to discuss
issues of interest, including through roundtable discussions and
training sessions; and will seek input regarding any training or other
technical assistance the institution may desire.
The FDIC will explore opportunities to facilitate collaboration and
partnering initiatives among minority depository institutions or
between minority depository institutions and non-minority depository
institutions. The FDIC recognizes that by facilitating these
collaborative relationships, institutions can have opportunities to
better meet the needs of their communities.
Training and Educational Programs
Training and educational programs, as defined by the FDIC's MDI
program, consist of instruction designed to impart proficiency or
skills related to a particular job, process, or regulatory policy. The
FDIC will work with other banking regulatory agencies and trade
associations representing minority depository institutions to
periodically assess the need for, and provide for, training and
educational opportunities. The FDIC will partner with other federal
banking agencies and trade associations to offer training programs.
This training and education can be provided in person, through webinars
or conference calls, or in a conference setting.
Reporting
The regional coordinators will report regional office activities
related to the MDI program to the national director quarterly. The
national director will develop a comprehensive report on all MDI
program activities and submit the report quarterly to the Chairman. The
FDIC's efforts to preserve and promote minority depository institutions
will also be highlighted in the FDIC's Annual Report and the Annual
Report to Congress on the Preservation and Promotion of Minority
Depository Institutions pursuant to Section 367 of the Dodd-Frank Wall
Street Reform and Consumer Protection Act of 2010 and Section 308 of
FIRREA.
Measuring Program Effectiveness
The national director and the regional office staff will routinely
solicit
[[Page 32734]]
feedback from minority depository institutions to assess the
effectiveness of the FDIC's technical assistance, outreach, and
training/education efforts and the MDI program in general. The FDIC
will track instances of technical assistance, outreach, and training
and education and solicit feedback on the effectiveness of these
activities by administering periodic surveys and holding discussions
with bank management.
Examinations
All insured institutions must be operated in a safe and sound
manner, in accordance with FDIC's regulations. Likewise, all
examinations must be conducted within the parameters of FDIC exam
policies and should consistently measure the risk an institution poses
to the FDIC's deposit insurance fund. Notwithstanding, and consistent
with the Uniform Financial Institutions Rating System (UFIRS) and the
Uniform Interagency Consumer Compliance Rating System (UICCR),
examiners are expected to recognize the distinctive characteristics and
differences in core objectives of each financial institution and to
consider those unique factors when evaluating an institution's
financial condition and risk management practices.
Under the UFIRS and UICCR, each financial institution is assigned a
composite rating based on an evaluation of specific components, which
are also rated. For UFIRS, these component ratings reflect an
institution's capital adequacy, asset quality, management capabilities,
earnings sufficiency, liquidity position, and sensitivity to market
risk (commonly referred to as the CAMELS ratings). Likewise, the UICCR
is organized under broad components that assess the institution's board
and management oversight, compliance program, violations of law, and
consumer harm. The uniform rating systems and evaluation and rating
criteria are specific to the examination types performed. Further, the
assignment of the rating is based solely on the subject institution's
individual performance under the specific components.
Management practices, particularly as they relate to risk
management, vary considerably among financial institutions depending on
size and sophistication, the nature and complexity of business
activities, and risk profile. Each institution must properly manage
risks and have appropriate policies, processes, or practices in place
that management follows and uses. Activities undertaken in a less
complex institution engaging in less sophisticated risk-taking
activities may need only basic management and control systems compared
to the detailed and formalized systems and controls used for the
broader and more complex range of activities undertaken at a larger and
more complex institution.
Peer comparison data are not included in the rating systems. The
principal reason is to avoid over reliance on statistical comparisons
to justify the component rating being assigned. Avoiding such
overreliance is very important when evaluating minority depository
institutions due to their unique characteristics. For example, many
minority depository institutions were established to serve an otherwise
under-served market. High profitability may not be as essential to the
organizers and shareholders of the institution. Instead, community
development, improving consumer services, and promoting banking
services to the unbanked or under-banked segment of its community may
drive many of the organization's decisions. The UFIRS allows for
consideration of the characteristics by considering not only the level
of an institution's earnings, but also the trend and stability of
earnings, the ability to provide for adequate capital, the quality and
sources of earnings, and the adequacy of budgeting systems.
Examiners are instructed to consider all relevant factors when
assigning a component rating. The rating systems are designed to
reflect an assessment of the individual institution, including its size
and sophistication, the nature and complexity of its business
activities, and risk profile.
Failing Institutions
The FDIC will attempt to preserve the minority character of failing
institutions during the resolution process. In the event of a potential
failure of a minority depository institution, the Division of
Resolutions and Receiverships will contact all minority depository
institutions nationwide that qualify to bid on failing institutions.
The Division of Resolutions and Receiverships will solicit qualified
minority depository institutions' interest in the failing institution,
discuss the bidding process, and offer to provide technical assistance
regarding completion of the bid forms. In addition, the Division of
Resolutions and Receiverships, with assistance from the Office of
Minority and Women Inclusion, will maintain a list of minority
individuals and nonbank entities that have expressed an interest in
acquiring failing minority depository institutions and have been pre-
approved by the Division of Risk Management Supervision and the
chartering authority for access to the FDIC's virtual data room for
online due diligence.
Internet Site
The FDIC will maintain a website to promote the MDI program. Among
other things, the website will describe the tools and resources
available under the program. The website will include the name, phone
number, and email address of the national director, each regional
coordinator, and additional staff. The website will also contain links
to the list of minority depository institutions, pertinent trade
associations, and other federal agency programs. The FDIC will also
explore the feasibility and usefulness of posting other items to the
page, such as statistical information and comparative data for minority
depository institutions. Visitors will have the opportunity to provide
feedback regarding the FDIC's program and the usefulness of the
website.
IV. Administrative Law Matters
The Paperwork Reduction Act of 1995 (PRA) \7\ states that no agency
may conduct or sponsor, and no respondent is required to respond to, an
information collection unless it displays a currently valid Office of
Management and Budget (OMB) control number.
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\7\ 44 U.S.C. 3501, et seq.
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The Statement of Policy Regarding Minority Depository Institutions
does not create any new or revise any existing information collections
pursuant to the PRA. Rather, any reporting, recordkeeping, or
disclosure activities mentioned in the Statement of Policy Regarding
Minority Depository Institutions are usual and customary and should
occur in the normal course of business as defined in the PRA.\8\
Consequently, no submissions will be made to the OMB for review. No
comments were received regarding PRA or other burdens.
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\8\ 5 CFR 1320.3(b)(2).
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Federal Deposit Insurance Corporation.
By order of the Board of Directors.
Dated at Washington, DC, on June 15, 2021.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2021-12972 Filed 6-22-21; 8:45 am]
BILLING CODE 6714-01-P
