U.S. Treasury Department’s Minority Bank Deposit Program

The U.S. Treasury Department’s Minority Bank Deposit Program (MBDP) is an initiative to help establish, preserve, and strengthen minority business enterprises.  Minority-owned financial institutions are included under the definition of minority business enterprises. 

MBDP is a voluntary program that encourages federal agencies, state and local governments and the private sector to use MBDP participants as depositaries and financial agents. Eligible participants include commercial banks and savings and loan associations that are minority-owned or minority-controlled; commercial banks and savings and loan associations that are owned, controlled and operated by women; and, credit unions serving low-income members (i.e., low-income credit unions).

An eligible financial institution must apply and be certified by the Treasury Department’s Financial Management Service to participate in the MBDP. Once certified, MBDP financial institutions market their services to federal agencies as they would to any potential customer. As part of their marketing efforts, MBDP participants typically contact local, regional and national offices of federal agencies to determine if banking-type services are needed and can be established. If a federal agency chooses to use a MBDP participant as a depositary, the agency must coordinate the banking-type arrangements with its headquarters office and the Financial Management Service.

Potential federal government deposits include agency deposits of public money, cash advances to federal contractors and grantees; certain independent demand deposits, e.g., Postal Service deposits; and certificates of deposit (CDs). Typical CDs include the non-appropriated funds of various military organizations (exchange or club funds), certain Department of Agriculture funds, and funds that the Bureau of Indian Affairs invests on behalf of Indian Tribes and Alaskan Native Villages.

The Financial Management Service certifies eligibility for MBDP participation and maintains and publishes the roster of participating financial institutions. The roster is distributed periodically to federal agencies, interested state and local government agencies and private sector enterprises, and minority banks.

A list of minority-owned institutions currently participating in the MBDP can be viewed at the FMS Web site.  For additional information, log on to the MBDP Web site at www.fms.treas.gov/mbdp/index.html.