Minority Depository Institutions Flashcards
What laws and regulations govern the preservation and protection of MDIs?
Section 367 Dodd-frank
Consumer Protection Act
Section 308 FIRREA
What goals for MDIs are established under FIRREA?
- Preserve # MDIs
- Preserve minority character in mergers/acquisitions of MDIs
- Provide Tech Support to prevent insolvency in MDIs
- Promote creation of new MDIs
- Provide training, tech support, educational programs for MDIs
What is required of the FDIC regarding MDIs under Dodd-Frank and the Consumer Protection act?
Annual report to congress that:
- provides summary of MDIs
- description of MDI program
- details on initiatives by FDIC to support MDIs
What is the definition of an MDI?
- Bank were 51% or more voting stock is owned by minority individuals
- majority of Board is minority and community serviced is predominantly minority.
How does the FDIC monitory MDIs?
Maintain an official list of MDIs
Examiners and RO support WO by notification of any changes or concerns
Regional coordinators assigned who contact each MDI annually to discuss any issues or provide assistance.
What happens at conclusion of exam of MDI?
FDIC will offer to have reps return to bank 90 to 120 days later to review areas of concern or topics of interest to the bank.
This assists management in understanding and implementing exam recommendations.
True or false: Examiners can directly aid/provide technical assistance to MDIs?
False: examiners can advise and provide information, but cannot directly perform or assist with anything.
ex: can provide info on CRA opportunities, but cannot recommend specific transactions.
How does the FDIC offer Training and educational programs to MDIs?
FDIC works with trade associations and other reg agencies to assess the need for, and provide for training and educational opportunities.
National and regional coordinators also work with them to identify groups that may be interested in creating MDIs and assisting with the application process.
What happens to a failing MDI?
DRR contacts all MDIs that qualify to bid on failing banks an assists with process.
They also maintain a list of MDIs interested in acquiring failing MDIs.
What is included as part of the MDI annual report to congress?
Minority Status (what group) Type of bank Regulator Location Cert FDIC region Total Assets
Why are MDIs important?
They play a vital role in US economy:
Tend to maintain offices in underserved communities, LMI communities, communities with more minorities.
Tend to originate more mortgages to borrowers in LMI tracts, and to minority borrowers.
How can non-MDIs collaborate with/support MDIs?
Direct investment
loan participations or other lending arrangements
Sharing of bank staff or resources
Information networking
