Preface: Implementing the Dodd-Frank Act

The Board of Governors of the Federal Reserve System (Board) is responsible for implementing numerous provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act), including mandates to preserve and promote Minority Depository Institutions (MDIs). The Dodd-Frank Act requires, among other things, that the Board produce reports to Congress on a number of topics.

The Board maintains a Regulatory Reform website, which provides an overview of regulatory reform efforts implementing the Dodd-Frank Act and a list of the implementation initiatives completed by the Board as well as the most significant initiatives the Board expects to address in the future.1


Bank Secrecy Act/Anti-Money
Community Development Financial Institution
Community Reinvestment Act
Financial Institutions Reform, Recovery, and Enforcement Act of 1989
Federal Reserve Bank
Low- and moderate-income
Minority depository institution
National Bankers Association
Partnership for Progress

Executive Summary

The Board submits this report pursuant to section 367 of the Dodd-Frank Act. Section 367 of the Dodd-Frank Act requires the Board to submit an annual report to the Congress detailing the actions taken to fulfill the requirements outlined in section 308 of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989, as amended by the Dodd-Frank Act in 2010 (see appendix A). In addition to the annual reporting requirement, FIRREA section 308 requires the Federal Reserve System (System) to devote efforts toward preserving minority ownership of minority depository institutions (MDIs).

In 2019, the House Financial Services Committee held two hearings on MDIs, one of which included a panel of regulators, including the Federal Reserve.2 Art Lindo, deputy director of the Division of Supervision and Regulation, testified about the Federal Reserve's commitment to and efforts to assist MDIs.3 The Federal Reserve recognizes that there is more to be done, especially as it relates to the decline in African American owned banks. This report details programing and outreach from 2019 and includes a preview of efforts underway in 2020.

The System's Partnership for Progress (PFP) program was established in 2008 because Federal Reserve leadership recognized the importance of MDIs and wanted to independently take steps to preserve and promote these institutions. Leadership at the Federal Reserve supports an inclusive financial system and understands the challenges inherent in providing access to credit and other financial services in traditionally underserved areas. As such, the Federal Reserve remains strongly committed to identifying and implementing all opportunities to support MDIs.

Throughout 2019, the System supervised 15 MDIs with combined assets of over $101 billion.4 This represents approximately 2 percent of the 754 community and regional banks in the System's community and regional banking organizations portfolios. To support these institutions and to accomplish the broader minority depository-related FIRREA goals, the Federal Reserve leadership continues to dedicate resources to engage in proactive outreach and technical assistance activities. Throughout 2019, staff from the Board and PFP-dedicated staff from each of the 12 Federal Reserve Banks (FRBs) engaged in activities to support MDIs. Highlights of those activities included

  • planning and executing the 2019 Interagency MDI and CDFI Bank conference, in collaboration with the Federal Deposit Insurance Corporation (FDIC) and Office of the Comptroller of the Currency (OCC);
  • co-sponsoring Banking and the Economy: A Forum for Minorities in Banking, which was held at the Federal Reserve Bank of St. Louis;
  • participating and hosting an exhibit table at the National Bankers Association (NBA) 72nd Annual Convention in Washington, D.C.;
  • partnering with the FDIC for a MDI collaboration roundtable held November 7, 2019, in Chicago, Illinois;
  • commissioning two research papers to understand the challenges and opportunities faced by the MDI industry;
  • providing technical assistance to MDIs on a wide variety of topics, including improving regulatory ratings, navigating the regulatory applications process, complying with the Bank Secrecy Act (BSA), understanding changes to the Community Reinvestment Act (CRA), and refining capital-planning practices;
  • maintaining a website that provides a full menu of banking resources—including regulatory guidance—relevant to MDIs;5 and
  • coordinating with the Board's CRA Policy team to represent the interests of MDIs in the CRA regulatory modernization process.

State Member MDIs

Throughout all of 2019, the System retained primary supervisory responsibility for 15 state member MDIs,6 which, with few exceptions, are community banks,7 have total assets of $10 billion or less (see table 1). (For more details on the 15 state member MDIs discussed in this report as well as a comparison of the number, assets, and demographics of state member MDIs from 2015–19, see appendix B.) Accordingly, the System's community banking organizations program,8 which is responsible for the risk-focused supervision of state member banks with less than $10 billion in total assets, maintains supervisory responsibility for the System's portfolio of MDIs.

Table 1. Asset distribution of state member MDIs
Asset size Number of banks Percentage of total
$250 million or less 7 47
$251 million to $500 million 2 13
Over $500 million to $1 billion 1 7
Over $1 billion to $10 billion 2 13
Greater than $10 billion 3 20
Total 15 100

Geographic Dispersion

In 2019, state member MDIs were located in 7 of the 12 Reserve Bank Districts, with assets concentrated in the New York and San Francisco Districts (see table 2).9 State member MDIs in these two Districts accounted for 98 percent of the total state member bank assets domiciled in the System's MDI portfolio. Though smaller in asset size, there is also a concentration of state member MDIs in the Kansas City District. All four of these banks are located in Oklahoma and are Native American MDIs.

Table 2. State member MDI distribution
Reserve Bank District Number of MDIs Total assets
Percentage of
total assets
Atlanta 1 418,130 0.41
Chicago 2 435,028 0.43
Dallas 1 236,063 0.23
Kansas City 4 683,226 0.67
New York 2 51,682,910 50.86
Philadelphia 1 238,451 0.23
San Francisco 4 47,928,578 47.16
Total 15 101,622,386 100.00

Minority Ownership Type

The System's MDI portfolio includes banks representing all minority ownership categories as defined by FIRREA. Consistent with national demographics for all MDIs, as of year-end 2019, most state member MDIs were under Asian American ownership, followed by Native American ownership (figure 1).

Figure 1. State member MDIs by minority type
Figure 1. State member MDIs by minority type
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Partnership for Progress Programming

The System supports MDIs primarily through its PFP program, a national outreach effort to help MDIs confront unique business-model challenges, cultivate safe banking practices, and compete more effectively in the marketplace. The program is jointly managed by the Community Banking Organizations section of the Supervision and Regulation Division and the Community Development section of the Consumer and Community Affairs Division. Supervision and Regulation strives for a resilient and well-managed financial system that fairly meets the needs of consumers and businesses while working to tailor its supervisory programs in a way that avoids imposing excessive burden on the financial institutions it oversees. The CD function within the System—consisting of individual community development departments at each of the 12 FRBs and at the Board—promotes economic growth and financial stability for lower-income communities and individuals through a range of activities, including convening stakeholders, conducting and sharing research, and identifying emerging issues.

The two divisions share in the staffing of the PFP program and have appointed senior officers from both divisions to co-chair the program's Executive Oversight Committee. In addition, each FRB has designated a PFP District coordinator(s) who communicates regularly with the MDIs in their District and assists with accomplishing the mission of the PFP program. The 2019 PFP programming reflected the strengths of both divisions and emphasized coordination between the two functions in the Reserve Bank Districts. The System also worked to encourage partnership between examination and community development staff at the FRBs to bring additional resources and creative programming to MDIs throughout the country. PFP provides technical assistance and outreach to the System's regulated MDIs but also views the congressional mandate in section 308 of the FIRREA to preserve and promote MDIs as more than simply supervising these institutions. In this regard, the Board actively works with colleagues at the other regulatory agencies with section 308 responsibilities to ensure a coordinated approach to supporting all MDIs.

The PFP program is centered on three main objectives:

  1. Connection: Facilitate relationship building, engage industry stakeholders, and develop relationships to support the preservation and creation of MDIs.
  2. Capacity Building: Provide organizational development and technical assistance to MDIs through Federal Reserve resources and in collaboration with the FDIC and OCC.
  3. Research and Thought Leadership: Produce high-quality research discussion papers that enhance our understanding of the business models of MDIs and how they serve their communities.

In addition, the Board is able to leverage the many resources available to the central bank of the United States to support MDIs consistent with the goals of the PFP program. First, the Federal Reserve is a research-driven institution and, as described above, has engaged with internal and external stakeholders on a range of research to enhance our understanding of the business models of MDIs and how they serve their communities. Second, Federal Reserve leadership, including Board Members and Reserve Bank presidents, have spoken publically about the importance and positive impact of MDIs on underserved communities.10 Third, through the convening power of the Federal Reserve, the System seeks to bring together individuals and institutions to form partnerships that will assist the MDI sector.

Throughout 2019, the Federal Reserve staff conducted a number of programs specific to MDIs, including the following:

  • National Interagency MDI and CDFI Bank Conference

    Every two years, the federal banking regulatory agencies (i.e., FDIC, OCC, and Federal Reserve) host an interagency conference for MDI and CDFI banks to help preserve and promote their mission. The 2019 conference was held June 25–26, 2019, at the FDIC's Seidman Center, located in Arlington, Virginia.

    The theme for the conference was "Focus on the Future: Prospering in a Changing Industry," and senior federal officials and MDI and CDFI bank executives were invited to participate. The conference began with opening remarks from each agency: Board Governor Michelle Bowman, FDIC Chairman Jelena McWilliams, and OCC Senior Deputy Comptroller Grovetta Gardineer. Governor Bowman's remarks focused on our PFP program and reaffirmed the Federal Reserve's commitment to preserving and promoting MDIs.

    The conference encouraged interactive discussion, provided a valuable networking opportunity, and set the stage for further discussions on the importance of MDIs and CDFIs to the communities they serve. More than 200 people attended the conference with participants from 70 banks.

    The conference covered a diverse range of topics that included
    • updates from senior officials from federal regulatory agencies on trending topics including resources, programs, and policies that can help minority and CDFI banks achieve goals;
    • bank CEOs "telling their story," communicating their strategies and successes, and making recommendations to the industry, federal policy makers, and others;
    • timely workshops that included topics such as cybersecurity, research, and succession management;
    • discussions on innovation, collaboration, and the evolving financial services landscape with examples of successful responses by community and midsize banks; and
    • presentations on the newly designated Opportunity Zones in low-income communities and research relevant to the MDI and CDFI industry.
  • Banking and the Economy: A Forum for Minorities in Banking

    The fourth annual Forum for Minorities in Banking sponsored by the Board, along with Federal Reserve Banks of Atlanta, Chicago, Dallas, Kansas City, Minneapolis, Philadelphia, Richmond, San Francisco, and St. Louis, was held September 26–27, 2019, at the Federal Reserve Bank of St. Louis. This forum is designed to provide senior-level or high-potential middle management minority bank leaders with industry, leadership, and professional development knowledge that will enhance their careers and networks.

    The forum began with remarks by Federal Reserve Bank of St. Louis President Bullard, in which he discussed the history of MDIs and the important role they play in their communities. Additionally, the forum featured insights from leaders across the System and the financial services industry on topics including cybersecurity, leadership development, cultural intelligence, and more. Forum sessions included discussions on banking trends, effective leadership, and the economic outlook for banks nationwide. All MDI banks were encouraged to attend, and several sent representatives to the conference. Planning is underway for the next forum, which will be held in September 2020 in Atlanta, GA.
  • MDI Roundtable

    In November, the Federal Reserve partnered with the FDIC for a collaboration roundtable that brought together MDIs and larger institutions. During this meeting, MDI leaders and bank leaders had the opportunity to discuss potential mutually beneficial partnership opportunities.

    The purpose of this roundtable was to highlight the business and regulatory benefits of partnerships with MDIs. For example, Congress recognized MDIs in the original CRA statute and included special consideration for MDIs, women-owned financial institutions, and low-income credit unions (collectively, MWLIs). Specifically, majority institutions may receive CRA credit for capital investment, loan participation, training, technical assistance, and other ventures undertaken by the bank in collaboration with MWLIs. Majority banks can also get credit for donating or selling on favorable terms a branch located in a predominately minority neighborhood to an MDI or women-owned depository institution. Such activities must help meet the credit needs of local communities in which the minority- and women-owned credit unions are chartered. However, unique to CRA, such activities need not also benefit the bank's assessment area(s) or the broader statewide or regional area that includes the bank's assessment area(s).

    PFP is working with the FDIC to capitalize on this unique CRA treatment and bring more MDIs and large regional banks together to discuss CRA-eligible partnership and investment opportunities. Planning is underway to continue and increase this effort in 2020.

Collaboration with Trade Groups and Other Partners

PFP also participated as subject matter experts at the following conferences that were related to MDI topics:

  • In October, Board and Reserve Bank staff represented PFP at the 92nd annual National Bankers Association (NBA) conference in Washington, D.C. The NBA is a trade organization for minority- and women-owned financial institutions that serves as an advocate for the nation's MDIs on legislative and regulatory matters concerning and affecting its members and the communities they serve. The NBA also offers a number of services, including lobbying services, vendor financing, cash-management services, and corporate trust accounts, among others. PFP participated on a panel on the Volcker rule11 and hosted an exhibit booth at the conference.
  • In May, representatives from PFP spoke with senior CRA examiners at their senior forum to raise the profile of MDIs, the PFP program, and discuss how CRA examiners can consider the unique missions of MDIs in the examination process.
  • In March, PFP hosted an information booth at the Community Bank Examiner Forum, which provided an opportunity to meet one on one with safety and soundness examiners from across the Federal Reserve System and share information about PFP and MDIs.

Research on MDIs and Low- and Moderate-Income Communities

Continuing with the Federal Reserve's commitment to understanding the challenges minority banking institutions face and their local market areas, in 2018 the Board commissioned two new pieces of research on MDIs.12 This research was completed in 2019 and presented at the Interagency MDI and CDFI Bank Conference in Arlington, VA, in June 2019. All research is available on the PFP website.13 Below are abstracts of the papers:

Minority Depository Institutions: Evolving Financial Technologies and the Challenge of Governance
By Jesus Hernandez, JCH Research; Gary A. Dymski, University of Leeds; and Melody Chiong, University of California San Diego

Minority Depository Institutions (MDI) came into being to create pathways for economic development in racially segregated neighborhoods. The effectiveness of MDIs in accomplishing this shared mission is acutely sensitive to three factors: the economic circumstances of the racial/ethnic community they serve; the structure of governance – both the public policies that directly govern MDIs, and also the overall pattern of urban governance, including macroeconomic policy stance and targeted public investment/tax programs; and third, the evolution of financial technologies. Together, these factors shape the strategic options that MDIs have for transformative practice in the communities they serve. This study examines how the intersection of historical unfolding of inequality, governance structures, and financial technologies have shaped the "logic of reinvestment" (Chiong, Dymski, and Hernandez 2018) of MDIs through a case study of Los Angeles County.

We first examine the trajectory of mortgage lending in Los Angeles, as revealed by HMDA data in the time period 1981 to 2007. Second, we implement an analysis of the legal requirements and socio-economic impacts of different federal and state lending programs linked to housing development. Third, we summarize data on MDIs in Los Angeles County from 1994 to 2018 to understand the growth of active MDIs over this period and their capacity to serve their communities. These research elements permit us to develop an innovative approach to the interlinkages of lending technologies and the role of federal and other levels of governance in shaping market and policy opportunities.

Is the Community Reinvestment Act Effective for Indian Country?
By Joanie Buckley, Oneida Nation Tribal Member and Russell Kashian, University of Wisconsin–Whitewater

The Community Reinvestment Act (CRA) is a U.S. law designed to encourage commercial banks to help meet the needs of borrowers in all segments of their communities, including low- and moderate-income neighborhoods (LMIs). Presidents of various Native American owned banks were interviewed, and one overarching comment surfaced: the law does not recognize the contribution of Native American banks to underserved Native Americans because many of these prospective borrowers live in rural areas outside of what are labelled "assessment areas" under the CRA. In effect, the limitations imposed by the assessment area component of the CRA punishes these banks and discourages them from acting on the underlying intent of the CRA to provide access to credit for their population – Native Americans. Furthermore, this requirement conflicts with the core foundation of and support by the Federal Deposit Insurance Corporation (FDIC) in promoting Minority Depository Institutions (MDIs) and their vital role in the financial system and to their communities.

If indeed the contribution of Native American Banks, as MDIs, provides an important mission in credit lending to their population, where the majority remain underserved, then consideration needs to be given to their outreach efforts to Native Americans, rather than activities within their CRA assessment area. We propose to measure their contribution through quantitative data on CRA ratings, and three case studies with qualitative data are provided to endorse the notion of expanding the CRA assessment area. Having a designation for CRA evaluation that can include the contributions of MDI Native American banks beyond their assessment area, to serve their population and to promote partnerships between MDIs and larger banks for investment into Indian Country, may further open up lending for those rural areas which remain underserved, specifically within reservations. This unique program directly connects these banks to their communities, throughout Indian Country, wherever they may live; and promotes the intent of MDIs and CRA to create economic investments in LMIs.

In mid-2019, the Board also commissioned a new piece of MDI research, which will be delivered in mid-2020. Gregory B. Fairchild from the University of Virginia will author a study titled "Just How Risky? Comparative Institutional Risks of Minority Depository Institutions (MDIs) and Community Development Financial Institutions (CDFIs)." This study will be presented to MDI leaders during a webinar in mid-2020.

In June 2019, as part of its initiative to gain a broader understanding of the banking sector, the Federal Reserve Bank of Kansas City released a book on the history of the first African American banks in the United States. The book is titled Let Us Put Our Money Together: The Founding of America's First Black Banksand is written by Tim Todd.14 Efforts to establish African American banks began before the Civil War. The book is intended to be a resource for educators, historians, financial journalists, banks and more. Let Us Put Our Money Together details the nation's first black bankers in the 1800s, their challenges, innovation, and resilience. Three banks are prominently featured, the True Reformers Bank (Virginia), Capital Savings Bank (Washington, D.C.), and the Alabama Penny Savings Bank (Alabama). The book's title is inspired by Maggie Lena Walker, the first black female bank president in the U.S., who said, "Let us put our moneys together. Let us use our moneys; let us put our moneys out at usury among ourselves and reap the benefit ourselves. Let us have a bank that will take the nickels and turn them into dollars." A complimentary hardcopy can be ordered via the Kansas City Fed website. The book summary and a free e-book is also available online.

In addition, throughout 2019, FRB staff published articles and surveys that both evaluated conditions in low- and moderate-income (LMI) communities and described efforts to support them, including by community banks. Much of this research came out of the community development function at the Board and Reserve Banks. Because the success of MDIs is often dependent on the health of the communities they serve, these articles are particularly relevant to the MDI business model. In addition, several of these articles noted the difficulty minority and LMI populations have accessing credit from mainstream financial institutions. These articles intend to provide service providers, policymakers, and others with a way to assess the needs of these communities and to evaluate changes in the economic conditions of these populations.

The following list highlights some of the articles and surveys published during 2019:

  • Perspectives from Main Street: Bank Branch Access in Rural Communities:15 This report examines how rural consumers and small businesses use bank branches and how their communities have been affected by branch closures. Of the counties analyzed in the report, more than half lost bank branches between 2012 and 2017, with some predominantly rural counties experiencing considerable declines. The deeply affected rural counties tended to be less economically well off and have residents with lower levels of education. They also had a greater proportion of minority residents relative to other rural counties. Much of the information in the report was gathered at listening sessions hosted by FRBs across the country between July 2018 and January 2019. The consumers, small-business owners, and local government officials who participated in the sessions said that while they have found local or technological substitutes for many, but not all services, the alternatives are generally more costly and less convenient.
  • Perspectives from Main Street: Stakeholder Feedback on Modernizing the Community Reinvestment Act:16 This report is a summary of feedback received from bankers and community groups during a series of 29 roundtable discussions on the current state of, and potential revisions to, the Community Reinvestment Act (CRA). The information was gathered from CRA roundtables hosted by the Board and the FRBs held between October 2018 and January 2019. More than 400 participants shared views that will factor into the Board's consideration of any CRA modernization proposals. The Board held one roundtable discussion specifically for all Fed-regulated MDIs.
  • Low- and Moderate-Income Surveys:17 Several FRBs, including the Federal Reserve Bank of Kansas City, which retains a large number of state member MDIs, publish quarterly results from surveys designed to measure the economic conditions of LMI populations and the condition of organizations that serve them.
  • The Digital Divide in Indian Country: Broadband access rates differ significantly among American Indian reservations but are, on average, low relative to national norms.18 Tribes and tribal organizations are working to reduce this impediment to economic development on reservations.
  • Small Business Credit Survey Report on Minority-Owned Firms: Small businesses are crucial to the nation's economy. They employ almost half of U.S. workers and are important sources of employment and wealth building, particularly for minority communities. The number of minority-owned businesses has grown rapidly in recent years, which means that their well-being and ability to access financing is increasingly important to fostering economic opportunity and broader economic growth. This report examines the state of minority-owned businesses, offering insights on their performance, access to financing, and experiences in the credit market. Some key findings include:
    • For many minority-owned businesses, key performance indicators like profitability and revenue growth lagged White-owned firms.
    • Minority-owned firms relied to a greater extent on personal funds and on personal credit scores when applying for financing than did White-owned firms.
    • Minority-owned firms' loan applications tended to have worse outcomes (not controlling for other firm characteristics) than did the applications of White-owned firms, particularly at small banks or online lenders.
    • Dissatisfaction with a lender is relatively high among Black- and Hispanic-owned firms.19

Efforts and Initiatives

Preserving the Character and Number of MDIs

To preserve the character and number of state member MDIs, staff from the Board's mergers and acquisitions function coordinate with the FDIC to help identify healthy minority banking organizations capable of acquiring or merging with state member MDIs that are in troubled condition. To this end, PFP staff provide the FDIC with a quarterly list of all MDIs under System supervision. The Federal Reserve's mergers and acquisitions function continues to offer a pre-filing option for banking proposals, which provides critical feedback on potential issues and potentially shortens the review period for many formal proposals. Finally, whenever the Federal Reserve staff receive a proposal involving an MDI banking organization, every effort is made to ensure that the institution is preserved and that its future prospects are enhanced.

Promoting the Creation of MDIs

The Federal Reserve strives to promote the creation of new MDIs by providing guidance via public websites about regulatory procedures for minority bank ownership, informing MDIs of advantageous federally sponsored programs, and promoting community development. These web posts also provide guidance about financial institution development, including information about the process of starting a bank, managing a bank through the de novo period, and growing shareholder value while ensuring safe and sound operations. Further, District coordinators from each FRB periodically discuss emerging issues, attend conferences, serve on local exam teams during examinations, and collect feedback from MDIs on what they are seeing and how the PFP can provide additional assistance.

During 2019, PFP staff engaged with two investor groups seeking guidance on navigating the de novo process for establishing new banks with the regulatory agencies. PFP staff provided these investor groups with regulatory agency contacts and specific direction and timing for navigating the applications process. Ongoing contact was encouraged so that our staff could continue to assist with the challenges of the de novo process.

Training, Technical Assistance, and Educational Programs

District coordinators from each FRB meet regularly with MDI management to discuss emerging issues and provide technical assistance, especially to those in troubled condition, to explain supervisory guidance, discuss challenges, and respond to management concerns. Trending topics discussed throughout 2019 included IT/cybersecurity, concentrations in commercial real estate, interest-rate risk, capital planning and rules, BSA and anti-money-laundering compliance, third-party vendor management, and the CRA. The goal of these conversations is to help MDIs through technical complexities and provide the PFP with valuable insight and feedback on challenges facing MDIs. In 2019, two state member MDIs reached out to the District coordinator seeking subject matter expertise on BSA. The PFP arranged for System subject matter experts to help these MDIs understand and navigate the complexities of BSA regulation and helped them to work on correcting deficiencies within their BSA programs.

Partnership for Progress Website

Consistent with past years, one of the primary vehicles for distributing educational materials relevant to MDIs continues to be the System's PFP website.20

The website provides information about new regulations and their impact on community banking organizations; advertises regulatory and agency events relevant to MDIs; and shares information

focused on market conditions and economic data related to areas typically served by MDIs. To ensure continued relevance of posted material, PFP staff regularly update the website.

Additionally, in 2019, the PFP revised the MDI section of the Board's website.21 The new version contains an updated description of the PFP program and links to quarterly MDI data and the PFP website. The new website is regularly updated by PFP staff.

Publications and Webinars

The Federal Reserve continues to support enhanced communications with community banks, including MDIs. To this end, the staff disseminates important information about regulatory matters through the publication and programs below, most of which are accessible through links on the PFP website.

The System's Community Banking Connections® publication22 serves to

  • clarify key supervisory guidance,
  • highlight new regulations,
  • provide perspectives from bank examiners and System staff, and
  • address challenges and concerns facing community banks and provide resources to assist them.

The System's Consumer Compliance Outlook® publication23 focuses on compliance with federal consumer protection laws and regulations for financial services and serves to

  • clarify key supervisory guidance,
  • explain new and existing regulatory compliance requirements,
  • provide perspectives from bank examiners and System staff,
  • address challenges and concerns facing community banks and provide resources to assist them, and
  • discuss emerging compliance issues such as lenders' use of alternative data in credit decisions.

Outlook Live is a webinar series dedicated to consumer compliance.24 The Outlook Live webinars involve a variety of presenters from both the System and the other federal financial regulatory agencies, focusing on key emerging issues in the industry.

Ask the Fed® is a program of the Federal Reserve for officials of state member banks, other insured depository institutions, bank and thrift holding companies, state bank commissioners, and state banking associations.25 Ask the Fed® consists of periodic conference call/webinars that feature Federal Reserve experts and guest speakers on top banking questions of the day with time at the end for questions and comments.

Appendix A: Section 308 of FIRREA

Section 308 of FIRREA, as amended by the Dodd-Frank Act, requires

  1. CONSULTATION ON METHODS.—The Secretary of the Treasury shall consult with the Chairman of the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, the Chairman of the National Credit Union Administration, and the Chairperson of the Board of Directors of the Federal Deposit Insurance Corporation on methods for best achieving the following:

    1. Preserving the present number of minority depository institutions.
    2. Preserving their minority character in cases involving mergers or acquisition of a minority depository institution by using general preference guidelines in the following order:

      1. Same type of minority depository institution in the same city.
      2. Same type of minority depository institution in the same State.
      3. Same type of minority depository institution nationwide.
      4. Any type of minority depository institution in the same city.
      5. Any type of minority depository institution in the same State.
      6. Any type of minority depository institution nationwide.
      7. Any other bidders.
    3. Providing technical assistance to prevent insolvency of institutions not now insolvent.
    4. Promoting and encouraging creation of new minority depository institutions.
    5. Providing for training, technical assistance, and educational programs.
  2. DEFINITIONS.—For purposes of this section—

    1. MINORITY FINANCIAL INSTITUTION.—The term "minority depository institution" means any depository institution that—

      1. if a privately owned institution, 51 percent is owned by one or more socially- and economically-disadvantaged individuals;
      2. if publicly owned, 51 percent of the stock is owned by one or more socially- and economically-disadvantaged individuals; and
      3. in the case of a mutual institution, the majority of the board of directors, account holders, and the community which it services is predominantly minority.

MINORITY.—The term "minority" means any Black American, Native American, Hispanic American, or Asian American.26

In addition, section 367 of the Dodd-Frank Act amended FIRREA to require the supervisory agencies to submit an annual report to the Congress containing a description of actions taken to carry out FIRREA section 308.

Appendix B: MDI Tables and Figures

Figure B.1. Proportion of MDIs that are state member banks, 2015–19
Figure B.1. Proportion of MDIs that are state member banks, 2015–19
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Figure B.2. Assets by type of MDI, 2015–19
Figure B.2. Assets by type of MDI, 2015–19
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Figure B.3. Number of state member MDIs by type of minority, 2015–19
Figure B.3. Number of state member MDIs by type of minority, 2015–19
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The minority status of an institution is determined according to either (1) a concentration of ownership among members of a certain minority group or (2) a concentration of Board membership among that minority group by an institution that primarily serves that minority group. To simplify the use of the historical data, these two criteria were combined in 2017 to arrive at a single data field that indicates one of five values for minority status. As a result, as of year-end 2017, no state member banks qualify as multiracial.

Table B.1. State member MDIs
ID RSSD Institution name State Reserve Bank District Minority status Assets ($'000)
146056 Allnations Bank OK Kansas City N 43,346
2785477 Asian Bank PA Philadelphia A 238,451
940311 Banco Popular de Puerto Rico PR New York H 41,627,000
64552 Bank 2 OK Kansas City N 198,963
815754 Bank of Cherokee County OK Kansas City N 118,707
777366 Bank of the Orient CA San Francisco A 894,124
680130 Citizens Trust Bank GA Atlanta B 418,130
3337097 CommonWealth Business Bank CA San Francisco A 1,162,520
197478 East West Bank CA San Francisco A 44,181,503
  First Choice Bank CA San Francisco A 1,690,431
296456 Firstbank OK Kansas City N 322,210
2360904 Pacific Global Bank IL Chicago A 219,898
365745 Pinnacle Bank IA Chicago N 215,130
2736291 Popular Bank NY New York H 10,055,910
2942823 United Bank of El Paso del Norte TX Dallas H 236,063
Number of Institutions: 15   Total Assets   101,622,386
Table B.2. List of MDIs as of December 31, 2019
Name City State Est. date Class Regulator Minority status alpha Total assets ($'000)
Alamerica Bank Birmingham AL 20000128 NM FDIC B 19,584
Commonwealth National Bank Mobile AL 19760219 N OCC B 49,791
American Continental Bank City of Industry CA 20031006 NM FDIC A 269,874
American Plus Bank, N.A. Arcadia CA 20070808 N OCC A 563,445
Asian Pacific National Bank San Gabriel CA 19900725 N OCC A 56,537
Bank of Hope Los Angeles CA 19860318 NM FDIC A 15,666,543
Bank of the Orient San Francisco CA 19710317 SM FED A 894,124
Bank of Whittier, National Association Whittier CA 19821220 N OCC A 73,884
Broadway Federal Bank, f.s.b. Los Angeles CA 19470226 SB OCC B 438,033
California Business Bank Irvine CA 20051101 NM FDIC A 82,608
California International Bank, N.A. Westminster CA 20051130 N OCC A 42,943
California Pacific Bank San Francisco CA 19801016 NM FDIC A 77,392
Cathay Bank Los Angeles CA 19620419 NM FDIC A 18,066,529
Commercial Bank of California Irvine CA 20030515 NM FDIC H 1,084,381
Commonwealth Business Bank Los Angeles CA 20050303 SM FED A 1,162,520
Community Commerce Bank Claremont CA 19761001 NM FDIC H 279,859
CTBC Bank Corp. (USA) Los Angeles CA 19650427 NM FDIC A 3,673,681
East West Bank Pasadena CA 19720101 SM FED A 44,181,503
Eastern International Bank Los Angeles CA 19850226 NM FDIC A 128,700
EverTrust Bank Pasadena CA 19950503 NM FDIC A 945,202
First Choice Bank Cerritos CA 20050818 SM FED A 1,690,431
First Commercial Bank (USA) Alhambra CA 19970520 NM FDIC A 692,103
First General Bank Rowland Heights CA 20051013 NM FDIC A 977,318
Gateway Bank, F.S.B. Oakland CA 19900608 SB OCC A 128,563
Hanmi Bank Los Angeles CA 19821215 NM FDIC A 5,530,677
Mega Bank San Gabriel CA 20080205 NM FDIC A 389,990
Metropolitan Bank Oakland CA 19830901 NM FDIC A 181,441
Mission National Bank San Francisco CA 19820216 N OCC A 250,037
New OMNI Bank, National Association Alhambra CA 19800212 N OCC A 460,253
Open Bank Los Angeles CA 20050610 NM FDIC A 1,179,378
Pacific Alliance Bank Rosemead CA 20061227 NM FDIC A 269,124
Pacific City Bank Los Angeles CA 20030918 NM FDIC A 1,746,302
Preferred Bank Los Angeles CA 19911223 NM FDIC A 4,630,165
Royal Business Bank Los Angeles CA 20081118 NM FDIC A 2,783,284
United Pacific Bank City of Industry CA 19820511 NM FDIC A 149,364
Universal Bank West Covina CA 19541117 SB OCC A 417,227
US Metro Bank Garden Grove CA 20060915 NM FDIC A 542,288
Native American Bank, National Association Denver CO 19870727 N OCC N 132,849
Industrial Bank Washington DC 19340818 NM FDIC B 530,840
BAC Florida Bank Coral Gables FL 19731012 NM FDIC H 2,260,033
Banesco USA Coral Gables FL 20060110 NM FDIC H 1,718,155
Central Bank Tampa FL 20070226 NM FDIC A 200,413
Executive National Bank Miami FL 19720607 N OCC H 467,405
Interamerican Bank, A FSB Miami FL 19760823 SB OCC H 201,400
International Finance Bank Miami FL 19831130 NM FDIC H 780,095
Ocean Bank Miami FL 19821209 NM FDIC H 4,314,163
Plus International Bank Miami FL 20010914 NM FDIC H 72,586
Sunstate Bank Miami FL 19990315 NM FDIC H 451,808
U. S. Century Bank Doral FL 20021028 NM FDIC H 1,312,272
Carver State Bank Savannah GA 19270101 NM FDIC B 42,345
Citizens Trust Bank Atlanta GA 19210618 SM FED B 418,130
Embassy National Bank Lawrenceville GA 20070305 N OCC A 109,617
First IC Bank Doraville GA 20000131 NM FDIC A 704,772
Loyal Trust Bank Johns Creek GA 20191118 NM FDIC A 25,679
Metro City Bank Doraville GA 20060404 NM FDIC A 1,636,039
PromiseOne Bank Duluth GA 20081106 NM FDIC A 450,362
Quantum National Bank Suwanee GA 19951227 N OCC A 512,653
Touchmark National Bank Alpharetta GA 20080128 N OCC A 407,629
ANZ Guam, Inc. Hagatna GU 19910111 NM FDIC A 335,195
Bank of Guam Hagatna GU 19721211 NM FDIC A 1,944,695
BankPacific, Ltd Hagatna GU 19530101 SL FDIC A 154,562
Finance Factors, Ltd. Honolulu HI 19520514 NM FDIC A 589,208
Hawaii National Bank Honolulu HI 19600916 N OCC A 665,004
Ohana Pacific Bank Honolulu HI 20060601 NM FDIC A 183,814
Pinnacle Bank Marshalltown IA 19270505 SM FED N 215,130
American Metro Bank Chicago IL 19970129 NM FDIC A 80,451
Citizens Bank of Chatsworth Chatsworth IL 19340101 NM FDIC A 33,495
GN Bank Chicago IL 19340101 SB OCC B 137,351
International Bank of Chicago Chicago IL 19921026 NM FDIC A 677,878
Millennium Bank Des Plaines IL 20070702 NM FDIC A 153,551
Pacific Global Bank Chicago IL 19951109 SM FED A 219,898
CBW Bank Weir KS 18920101 NM FDIC A 86,916
Metro Bank Louisville KY 19970106 NM FDIC B 26,311
Liberty Bank and Trust Company New Orleans LA 19721116 NM FDIC B 601,545
Leader Bank, National Association Arlington MA 20020508 N OCC A 1,583,299
OneUnited Bank Boston MA 19820802 NM FDIC B 654,051
The Harbor Bank of Maryland Baltimore MD 19820913 NM FDIC B 311,321
First Independence Bank Detroit MI 19700514 NM FDIC B 295,951
Woodlands National Bank Hinckley MN 19081001 N OCC N 207,944
People's Bank of Seneca Seneca MO 19960315 NM FDIC N 238,507
Eagle Bank Polson MT 20060725 NM FDIC N 70,491
Lumbee Guaranty Bank Pembroke NC 19711222 NM FDIC N 343,753
Mechanics & Farmers Bank Durham NC 19080301 NM FDIC B 265,273
Turtle Mountain State Bank Belcourt ND 20071203 NM FDIC N 35,753
KEB Hana Bank USA, National Association Fort Lee NJ 19860916 N OCC A 243,086
New Millennium Bank Fort Lee NJ 19990719 NM FDIC A 389,647
Centinel Bank of Taos Taos NM 19690301 NM FDIC H 279,487
Abacus Federal Savings Bank New York NY 19841129 SB OCC A 353,374
Amerasia Bank Flushing NY 19880620 NM FDIC A 691,915
Carver Federal Savings Bank New York NY 19480101 SB OCC B 571,987
Eastbank, National Association New York NY 19841126 N OCC A 175,530
Global Bank New York NY 20070312 NM FDIC A 202,466
NewBank Flushing NY 20060929 NM FDIC A 451,432
Piermont Bank New York NY 20190701 NM FDIC A 45,298
Ponce Bank Bronx NY 19600331 SB OCC H 1,051,663
Popular Bank New York NY 19990102 SM FED H 10,055,910
Shinhan Bank America New York NY 19901018 NM FDIC A 1,627,721
United Orient Bank New York NY 19810409 NM FDIC A 82,908
AllNations Bank Calumet OK 19010101 SM FED N 43,346
Bank 2 Oklahoma City OK 19030101 SM FED N 198,963
Bank of Cherokee County Hulbert OK 19081201 SM FED N 118,707
Bank of Commerce Stilwell OK 19030203 NM FDIC N 131,854
Bank of Grand Lake Grove OK 20050609 NM FDIC H 170,152
F & M Bank Edmond OK 19020101 NM FDIC N 480,916
First National Bank and Trust Company Shawnee OK 19841029 N OCC N 243,644
First Security Bank and Trust Company Oklahoma City OK 19510406 NM FDIC B 55,713
FirstBank Antlers OK 19010101 SM FED N 322,210
Gateway First Bank Jenks OK 19350503 NM FDIC N 1,498,327
Oklahoma State Bank Vinita OK 19380713 NM FDIC N 154,754
Asian Bank Philadelphia PA 19990609 SM FED A 238,451
Noah Bank Elkins Park PA 20060717 NM FDIC A 390,453
United Bank of Philadelphia Philadelphia PA 19920323 NM FDIC B 49,442
Banco Popular de Puerto Rico Hato Rey PR 19990102 SM FED H 41,627,000
Banco Santander Puerto Rico San Juan PR 19721002 NM FDIC H 6,005,654
FirstBank Puerto Rico Santurce PR 19490117 NM FDIC H 12,597,360
Oriental Bank San Juan PR 19650325 NM FDIC H 9,253,736
OPTUS Bank Columbia SC 19990326 NM FDIC B 78,131
Citizens Savings Bank and Trust Company Nashville TN 19040104 NM FDIC B 97,321
Tri-State Bank of Memphis Memphis TN 19461216 NM FDIC B 85,617
American First National Bank Houston TX 19980518 N OCC A 1,904,248
Bank of South Texas Mcallen TX 19860708 NM FDIC H 137,980
Citizens State Bank Roma TX 19780515 NM FDIC H 87,941
Commerce Bank Laredo TX 19820331 NM FDIC H 508,218
Falcon International Bank Laredo TX 19861210 NM FDIC H 1,294,446
First State Bank Shallowater TX 19601008 NM FDIC A 95,194
Freedom Bank Freer TX 19580712 NM FDIC H 48,148
Golden Bank, National Association Houston TX 19850503 N OCC A 1,022,609
Greater State Bank Mcallen TX 19740101 NM FDIC H 89,273
International Bank of Commerce Zapata TX 19840206 NM FDIC H 384,273
International Bank of Commerce Brownsville TX 19841009 NM FDIC H 1,074,874
International Bank of Commerce Laredo TX 19660902 NM FDIC H 8,724,864
Lone Star National Bank Pharr TX 19830124 N OCC H 2,418,865
One World Bank Dallas TX 20050404 NM FDIC A 106,645
Rio Bank Mcallen TX 19850211 NM FDIC H 544,956
Southwestern National Bank Houston TX 19971103 N OCC A 590,447
State Bank of Texas Dallas TX 19871019 NM FDIC A 853,091
Texas National Bank Mercedes TX 19201126 N OCC H 330,035
United Bank of El Paso del Norte El Paso TX 20010501 SM FED H 236,063
Unity National Bank of Houston Houston TX 19850801 N OCC B 106,140
Wallis Bank Wallis TX 19721028 NM FDIC A 796,690
Zapata National Bank Zapata TX 19611116 N OCC H 86,614
UniBank Lynnwood WA 20061101 NM FDIC A 347,435
Bay Bank Green Bay WI 19950821 NM FDIC N 108,303
Columbia Savings and Loan Association Milwaukee WI 19240101 SL FDIC B 21,979
Total     Count 144     248,619,176

 1. Board of Governors of the Federal Reserve System, "About Regulatory Reform,";"Implementing the Dodd-Frank Act: The Federal Reserve Board's Role," to text

 2. "An Examination of Regulators' Efforts to Preserve and Promote Minority Depository Institutions," Subcommittee on Consumer Protection and Financial Institutions, November 20, 2019, to text

 3. Arthur Lindo, "Minority Depository Institutions" (testimony before the House Financial Services Subcommittee on Consumer Protection and Financial Institutions, U.S. House of Representatives, Washington, D.C., November 20, 2019), to text

 4. This was an increase of one institution from year-end 2018 due to a charter change in the first quarter of 2019. Return to text

 5. For details on the Partnership for Progress program and the range of available resources, see https://www.fedpartnership.govReturn to text

 6. The term state member refers to state-chartered banks that are members of the Federal Reserve System. Return to text

 7. For supervisory purposes, community banks are generally defined as those with less than $10 billion in total consolidated assets. Return to text

 8. Comprising staff in the divisions of Supervision and Regulation and Consumer and Community Affairs. Return to text

 9. Reserve Banks for the 12 Districts are headquartered in Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and San Francisco. Return to text

 10. For example, in September 2019, Federal Reserve Bank of St. Louis President Bullard spoke about PFP and the importance of MDIs at the Forum for Minorities in Banking,
Additionally, in June 2019, Federal Reserve Board Governor Bowman spoke about the Federal Reserve's support for MDIs at the Interagency MDI conference in Washington, D.C., to text

 11. The Volcker rule is found in section 619 of the Dodd-Frank Act. The rule generally prohibits banking entities from engaging in proprietary trading or investing in or sponsoring hedge funds or private equity funds. See "Volcker Rule," Board of Governors of the Federal Reserve, last update January 30, 2020, to text

 12. Full research papers can be found at to text

 13. "Partnership for Progress," Board of Governors of the Federal Reserve, https://www.fedpartnership.govReturn to text

 14. Tim Todd, Let Us Put Our Money Together: The Founding of America's First Black Banks (Kansas City: The Federal Reserve Bank of Kansas City, 2019). Return to text

 15. Board of Governors of the Federal Reserve System, Perspectives from Main Street: Bank Branch Access in Rural Communities (Washington: Board of Governors, November 2019), to text

 16. Board of Governors of the Federal Reserve System, Perspectives from Main Street: Stakeholder Feedback on Modernizing the Community Reinvestment Act (Washington: Board of Governors, June 2019), to text

 17. For an example of an LMI survey, see the Federal Reserve Bank of Kansas City website, to text

 18. "The Digital Divide in Indian Country," Center for Indian Country Development, Federal Reserve Bank of Minneapolis, January 7, 2019, to text

 19. FED Small Business, Report on Minority-Owned Firms, December 2019, to text

 20. Partnership for Progress, https://www.fedpartnership.govReturn to text

 21. "Minority Depository Institutions," Board of Govenors of the Federal Reserve System, last updated July 19, 2019, to text

 22. Community Banking Connections is a registered trademark of the Federal Reserve Bank of Philadelphia, https://www.communitybankingconnections.orgReturn to text

 23. Consumer Compliance Outlook is a registered trademark of the Federal Reserve Bank of Philadelphia, https://consumercomplianceoutlook.orgReturn to text

 24. The outlook live webinars can be seen at to text

 25. To register for Ask the Fed®, visit the site at to text

 26. Financial Institutions Reform, Recovery, and Enforcement Act of 1989, Pub. L. No. 101-73, 103 Stat. 183 (1989). Return to text

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Last Update: May 19, 2020