- Sources: federalreserve.gov and fedpartnership.gov
Treliant knows banking. If your MDI needs assistance with managing compliance, credit, financial crimes, or other risks, we can help.
The Board of Governors of the Federal Reserve System (FRB) has issued a joint Supervision and Regulation/Consumer and Community Affairs Letter to highlight the FRB’s Partnership for Progress (PFP) program, which supports minority depository institutions (MDIs) as part of effort to foster financial inclusion and provide greater access to financial services in traditionally underserved communities.
The PFP mission is to provide MDIs with resources to assist them in operating in a safe and sound fashion, complying with consumer protection laws and regulations, and meeting FRB supervisory requirements. Each FRB district has a PFP District Coordinator. The PFP is open to depository institutions meeting at least one of the following criteria:
- At least 51 percent of the voting stock is owned by economically disadvantaged individuals, including African-Americans, Native Americans, Hispanic Americans, or Asian Americans, ;
- For mutual institutions, the majority of the board of directors and account holders are minority individuals and the community served is predominantly minority ;
- A majority of the board of directors consists of minority individuals and the community served is predominantly minority; or
The depository institution is a woman-owned depository institution (WDI), as defined in the Community Reinvestment Act, which includes depository institutions where more than 50 percent of ownership or control is held by women, more than 50 percent of net profit or loss accrues to women, and a significant percentage of senior management positions are held by women.
Key components of the PFP include:
- Outreach to qualifying institutions;
- Technical assistance related to general bank and bank holding company operations; examination follow-up; and applications and de novo processes;
- Training and education opportunities; and
- In the event of imminent failure of an MDI, exploration of facilitation of applications processes and, in conjunction with the FDIC, efforts to preserve the minority character of failing MDIs during the resolution process.