Minority depository institution financial performance has significantly improved over the past five years, though the number of MDIs continues to decline, the FDIC reported.
In a new study released in conjunction with this week’s interagency conference, the FDIC said the number of MDIs declined by 31 percent from 2008 to 2018, which is a slower pace than the 33 percent rate for all community banks.
Since 2001, the number of Asian American, Hispanic American and Native American MDIs increased, while the number of African American MDIs declined by more than half. More than three-fourths of the assets of merged institutions and 86 percent of the assets of failed institutions have remained with MDI institutions.
The FDIC also announced several MDI initiatives at the interagency conference, which continues today, including a new MDI subcommittee as part of its Advisory Committee on Community Banking and roundtable discussions between MDIs and other FDIC-supervised institutions.
Speaking at the conference, Federal Reserve Governor Michelle Bowman said one of the most important ways to help minority banks is through regulatory relief. She cited several provisions from the ICBA-advocated S. 2155 regulatory relief law and the Fed’s Partnership for Progress outreach program.
ICBA this week is attending the conference and briefing members of Congress on the benefits of minority banks to local communities.