Policy Statement on Minority National Banks and Federal Savings Associations

Policy Statement on Minority National Banks
and Federal Savings Associations
The Office of the Comptroller of the Currency (OCC) recognizes the vital role that minority
national banks and federal savings associations (herein referred to as minority depository
institutions or MDIs), play in promoting the economic viability of the communities they serve. The
OCC reaffirms its commitment to further the regulatory and legislative mandates designed to
support the creation and preservation of these institutions.

Statutory Framework
Consistent with its mission of ensuring a safe and sound federal banking system, the OCC
promotes the preservation of robust and healthy MDIs and seeks to advance the goals of section
308 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA),
where applicable. In meeting these goals, the OCC will seek to:
•
•
•
•
•

preserve the number of MDIs.
preserve their minority character in cases of merger or acquisition.
provide technical assistance to help MDIs remain healthy.
promote and encourage the creation of new MDIs.
provide training, technical assistance, and educational programs.

Definition of MDIs
The OCC defines MDI as any national bank or federal savings association that (1) is not a U.S.
subsidiary of a foreign-owned bank; and (2) is at least 51 percent owned by minorities (African
Americans, Asian Americans, Hispanic Americans, and Native Americans), women, or socially
and economically disadvantaged individuals.
The OCC may consider additional factors when evaluating mutual institutions. First, the OCC may
consider a mutual federal savings association an MDI if the majority of the Board of Directors is
minority and the communities that it serves are predominantly minority. Second, the OCC may
consider a mutual institution an MDI if women comprise a majority of the Board of Directors and
hold a significant percentage of senior management positions.
The OCC, at its discretion, may continue to treat a national bank or federal savings association
previously designated as an MDI as covered by this policy statement, even if that institution no
longer meets the ownership criteria outlined above, provided that the institution primarily serves
the credit and other economic needs of the community in which it is chartered, and that
community is predominantly minority.

Identification of MDIs
The OCC maintains a list of MDIs on its Web site at www.occ.gov.
Formation of MDIs
The OCC provides advice and technical assistance to MDI applicants interested in obtaining a
national bank or federal savings association charter. The agency makes available materials useful
to organizing groups that help facilitate MDI applications. The OCC assists organizing groups
through pre-filing meetings and by commenting on draft applications. Requests for such
assistance should be directed to the licensing director in the OCC district office that serves the
area where the MDI will be headquartered.
An MDI may be eligible for designation as a community development bank if its activities
primarily support: (1) low- and moderate-income individuals or areas; (2) government-targeted
revitalization areas; or (3) activities that would be considered “qualified investments” under the
Community Reinvestment Act (CRA) regulations. An MDI’s designation as a community
development bank may facilitate investments in that community development bank by other
depository institutions.

Examination Support for MDIs
The OCC develops a supervisory strategy annually for each MDI. The supervisory strategy is
based on the risks facing each MDI and addresses specific supervisory issues identified by the
OCC as requiring attention. As part of the supervisory strategy, OCC examiners also consider the
MDI’s need for technical assistance, training, and education in such areas as compliance, risk
management, and operational issues.
The OCC assigns assistant deputy comptrollers (ADCs) and portfolio managers to MDIs who are
familiar with the issues define and needs of MDIs. Assignment of examiners to MDIs takes into
account the expertise and background needed to properly evaluate the products and services
offered by those MDIs and the markets and environments in which they operate.
Each OCC district has expert advisers who provide institutions with guidance on credit, asset
management, consumer compliance, capital markets, licensing, bank information systems, legal
issues, economic conditions, and other concerns.
The OCC periodically convenes meetings and discussions among ADCs with responsibility for
supervising MDIs. The purpose of the meetings is to exchange information and best practices for
supervising MDIs. ADCs also meet with minority bank trade associations to keep abreast of
important topics and emerging concerns.

2

Capital for MDIs
The OCC supports investments by national banks and federal savings associations in MDIs
pursuant to their respective public welfare investment authority (12 CFR 24 and 560.36).
National banks and federal savings associations that invest in MDIs may receive positive
consideration under CRA.

Resolution of Supervisory Cases
In the course of its ongoing supervision, the OCC provides advice and technical assistance to
help prevent the failure of MDIs. In resolving supervisory cases involving MDIs, the OCC
encourages remedies—including mergers and acquisitions—that are consistent with the MDIs’
safety and soundness and the goal of maintaining their minority ownership.

Supporting MDIs Through the Community Reinvestment Act
The OCC recognizes that majority-owned institutions are often key partners with MDIs. As
such, in assessing the record of a majority-owned, non-women-owned institution under CRA,
the OCC considers capital investment, loan participation, and other ventures undertaken in
cooperation with MDIs if such activities help meet the credit needs of local communities in
which the MDIs are chartered.

MDI Advisory Committee and Working Group
Roles and Responsibilities
The OCC seeks advice from a Minority Depository Institution Advisory Committee (MDIAC)
and the MDI Working Group to meet the goals outlined in section 308 of FIRREA and in this
policy statement. The Senior Advisor for Midsize and Community Bank Supervision is the OCC
official responsible for the MDIAC and the primary point of contact regarding MDI Advisory
Committee matters.

The Senior Advisor for External Outreach and Minority Affairs serves as chairperson of the MDI
Working Group and as the agency’s focal point for MDI matters. The OCC’s efforts in support
of MDIs are coordinated through the MDI Working Group, which is comprised of
representatives from several OCC departments, including Public Affairs (which includes
External Outreach and Minority Affairs), Midsize and Community Bank Supervision, Office of
Minority and Women Inclusion, and Community Affairs.

3

Information, Education, and Outreach for MDIs
The OCC provides relevant information to MDIs through news blasts and on the Minority
Bankers page on the agency’s Web site at www.occ.gov.
A series of workshops are available to directors of national banks and federal savings
associations. The workshops cover a variety of topics relevant to all community banks, including
those with minority ownership. The OCC actively promotes these workshops to MDIs,
encourages their directors to participate, and waives their registration fees.
The OCC, in collaboration with other financial regulatory agencies, periodically co-sponsors an
interagency national conference for MDIs. The conference highlights current regulatory
developments and provides the OCC’s executive leadership and managers opportunities to
understand and identify strategies to address issues facing MDIs. The OCC provides staff
resources to serve as speakers, moderators, and instructors.
OCC District Community Affairs Officers provide advice and technical assistance to MDIs
interested in structuring community development investments. District Community Affairs
Officers also advise MDIs on designing community development initiatives.

Annual Report
Pursuant to section 367 of the Dodd-Frank Wall Street Reform and Consumer Protection Act
and section 308 of FIRREA, the Comptroller of the Currency (1) consults with the Secretary of
the Treasury on methods for best achieving the aforementioned policy goals and (2) submits an
annual report to the Congress on actions taken to carry out the goals of section 308 of FIRREA.

Conclusion
The OCC recognizes the important role of MDIs in their communities and the federal banking
system. The agency is committed to employing measures and providing resources that preserve
minority ownership of national banks and federal savings associations and to helping MDIs
remain safe, sound, and capable of meeting the financial needs of their communities.

____//signed//_________________________
Thomas J. Curry
Comptroller of the Currency

June 7, 2013_______________________
Date

4