Policymakers should work to help minority depository institutions obtain capital, such as by reducing regulatory costs, ICBA leadership banker Jill Sung said at a congressional hearing.
Testifying before the House Subcommittee on Consumer Protection and Financial Institutions
, the president and CEO of Abacus Federal Savings Bank in New York discussed MDI challenges in raising capital and the decline in MDIs over the past decade.
Sung, chair of ICBA's Minority Bank Advisory Council and Consumer Financial Services Committee, said MDIs would benefit from the same regulatory relief policies that would help all community banks. She cited Home Mortgage Disclosure Act and Current Expected Credit Loss burdens and thanked the committee for its passage of bills on cannabis banking and "beneficial ownership" disclosures.
Sung's testimony also touched on subcommittee Chairman Gregory Meeks' (D-N.Y.) draft Ensuring Diversity in Community Banking Act of 2019. In her written testimony, Sung advocated streamlining the application process for MDIs to become Community Development Financial Institutions and reducing capital requirements for de novo banks, among other recommendations.
Read Sung's Testimony