Promote, Create and Preserve Minority Banks
Adjust Federal Regulations
First Rights to Bid
Collaborative Relationship and Partnerships Among Community Banks
Strengthen Federal Programs, Promote De Novo’s and Streamline CDFI Certification Process
Exemption from CRA Documentation
Partner with Private Sector Entities
Minority depository institutions (“MDI” or minority banks) play a unique role serving as catalysts for economic growth and revitalization in the neighborhoods they serve. These banks often play a critical role in providing credit, capital and financial services to low-to-moderate income and minority communities in urban, rural and suburban areas that are economically distressed and have historically been underserved by the financial industry.
Minority banks know and understand the culture of the communities they serve and are able to provide customized and culturally sensitive products and services. They finance small businesses, make housing affordable, revitalize community facilities, and provide financial literacy and technical assistance to their customers.
Minority banks are committed to the social mission of helping to improve lives and stabilize neighborhoods despite the difficulties and challenges of operating in distressed communities. It is crucial that minority banks have the legislative, regulatory, and financial support they need to stay operational and profitable. ICBA will promote legislation to help existing MDIs serve their communities, grow, and thrive as well as to foster the creation of new MDIs.
ICBA will work with the OCC, FDIC, and the Federal Reserve to improve their minority bank programs and identify opportunities for minority banks to collaborate or partner with larger community banks or private entities. Banks may receive Community Reinvestment Act credit considerations for direct investments, loan participations, sharing of bank staff and resources, and information sharing with minority banks.
ICBA believes that CRA regulations should exempt MDIs from documentation and full-scope examinations, thereby supporting these institutions through compliance relief. The mission of MDIs is fully consistent with the CRA, and excessive compliance burden should not keep MDIs from pursing this mission.