OCC Affirms Support for Minority-Owned Banks

In 2001, the OCC issued a Policy Statement on Minority-Owned National Banks recognizing the important role that minority-owned banks play in addressing the financial services needs of the communities they serve and affirming the agency’s commitment to the success of these banks.

Consistent with the goals of Section 308 of the Financial Institutions Reform Recovery and Enforcement Act of 1989 (FIRREA), which includes preserving existing minority depository institutions and promoting the creation of new depository institutions, this statement outlines OCC’s policies and initiatives to further the ability of minority-owned banks to prosper.

• Identification of Minority-Owned Banks
• OCC will maintain annually a list of minority-owned national banks and make it available on its Web site to entities interested in establishing business relationships with minority-owned institutions.


• Formation of Minority-Owned Banks
• OCC will provide advice and technical assistance to minority-bank applicants interested in entering the national banking system.


• Capital for Minority-Owned Banks
• The OCC’s Community Affairs Officers will: (1) provide technical assistance to minority-owned institutions interested in structuring community development investments under the “public welfare investment authority” (12 USC 24(Eleventh) and 12 CFR 24); and (2) assist established minority-owned banks in seeking designation as a community development focus bank. Such designation may help institutions establish their eligibility for funding from the Treasury Department’s Community Development Financial Institutions Fund.
• Investments in minority-owned banks are allowable investments pursuant to 12 USC 24(Eleventh) and 12 CFR 24 (“Part 24”), depending upon the nature of the institution’s mission and business operations, and may also be eligible for positive consideration under the Community Reinvestment Act.


• Examination Support for Minority-Owned Banks
• OCC will provide examination continuity for minority-owned national banks through the assignment of portfolio managers familiar with the bank.


• Information, Education and Outreach for Minority-Owned Banks
• OCC will sponsor roundtable discussions or conferences for CEOs and senior managers of minority-owned banks to highlight “best practices” and issues of particular relevance to minority-owned institutions.
• OCC will sponsor outreach events throughout the country to discuss supervisory and industry issues with OCC personnel.


• Supervisory Cases
• The OCC will encourage the preservation of the minority character of institutions in cases involving mergers or acquisitions. When supervisory cases entail resolving a minority-owned national bank, OCC will work with the FDIC and provide the support to enable the FDIC to identify potential minority investors.

For additional information, the policy statement and list of minority- and women-owned national banks are located at www.occ.gov/minority.htm