“It is our hope that with the commitment of these industry leaders, more private equity investors will join the growing ranks of those committed to building opportunity and prosperity where this support is needed the most,” FDIC chair Jelena McWilliams said in a written statement.
Such investments provide additional funding to aspiring entrepreneurs and local programs designed to address economic inequality.
The coalition of minority-owned banks known as the National Bankers Association said lack of capital has historically hindered MDIs’ ability to grow and provide financing to the people most likely to use their services.
“For nearly a century, our institutions have served the communities hardest hit by economic stressors and, most recently, the ongoing pandemic,” the association said Thursday in a written statement. “We believe investments in our institutions will profoundly and positively impact the communities we serve.”
The FDIC says it has engaged CEOs from an estimated combined total of 70 MDI, CDFIs, trade groups, potential investors, investment consultants and philanthropic organizations in conjunction with the new Mission-Driven Bank Fund.
The federal agency says the fund supports its commitment to promote and preserve mission-driven banks. It maintains an advisory role to support the fund’s focus without managing or getting involved in investment decisions.