Minority Bank Deposit Program

Getting Started

How to Qualify as a Participant:

• Who Is Eligible?
• How to Become a Participant

What Financial Institutions Are Eligible to Participate in the Program?

Eligible participants include commercial banks and savings and loan associations which are minority-owned or minority-controlled; commercial banks and savings and loan associations which are owned, controlled and operated by women; and, credit unions serving low-income members (i.e. low-income credit unions).

For purposes of MBDP eligibility, the term "minority business" refers to any financial institution which is owned or controlled by one or more socially or economically disadvantaged person(s). Such disadvantage may arise from cultural, racial, chronic economic circumstances or background, or other similar cause. These persons include, but are not limited to African Americans, Asian Americans, Hispanic Americans, Native Americans, Eskimos, Aleuts, or women. Eligibility for commercial banks and savings and loan associations is based on ownership or control, not on the minority composition of the community served by the financial institution. Mutual savings and loan associations are eligible if members of minority groups compose a majority of the board of directors. Low-income credit unions are defined as eligible if the majority of the membership has an annual income that falls at or below the minimum level standard of living established by the Bureau of Labor Statistics.

The term "minority ownership" refers to commercial banks or stock savings and loan associations where more than 50 percent of the institution's outstanding stock is owned by members of minority groups. The term "minority control" applies when minority persons hold by voting trust and/or proxy agreements enough shares so that when added to the shares owned by minority persons there is minority control over more than 50 percent of the outstanding voting stock of a financial institution. The voting trust and/or proxy agreements must have a life of at least three years, be irrevocable; and, the trustee (a member of a minority group) must have unfettered discretion in voting the stock.

The terms "women's bank" and "women's stock savings and loan" refer to institutions where more than 50 percent of the outstanding stock is owned by women, a majority of the board of directors are women, and a significant percentage of senior management positions are held by women. The term "women's mutual savings and loans" refers to mutual savings and loan institutions where a majority of the board of directors are women and a significant percentage of senior management positions are held by women.

To enroll as a new participant, please complete the MBDP Certification Form 3144.

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