OCC Revises Policy Statement on Minority Depository Institutions
The OCC revised and replaced its 2013 policy statement on minority depository institutions ("MDIs") to (i) "update and streamline" descriptions of its policies, procedures and programs and (ii) describe the range of programs it has in place to support MDIs.
The new statement replaces the 2013 policy statement. Among other revisions, the new statement:
- clarifies the definition of "minority," including when used in the term "minority depository institution";
- expands the composition requirements for considering a federal mutual savings association as an MDI (from women only to minority or other socially and economically disadvantaged individuals);
- details the process of forming a de novo bank as an MDI and provides additional guidance on designation requirements for existing banks and for continuing designations;
- removes a discussion on community development banks as outside of the scope of the statement;
- sets forth examples of support provided to MDIs including as to developing "a supervisory strategy for each MDI based on its unique risk profile and need for technical assistance, training, and education";
- sets forth examples of direct and indirect financial support that non-MDIs can provide through an applicable investment authority (such as investing in MDI-issued subordinated debt; placing deposit funds in an MDI; purchasing MDI-issued capital stock; engaging in a loan participation with an MDI) and collaborating with MDIs on products and services or contributing excess real estate; and
- clarifies potential resolution issues.