Lawmakers advocate for more help for minority-owned financial institutions

Two US senators forwarded correspondence to a trio of government agencies, arguing for more resources for minority-owned financial institutions.

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Sense. Sherrod Brown (D-OH), chairman of the US Senate Committee on Banking, Housing, and Urban Affairs, and Raphael Warnock (D-GA) sent letters to
the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve and the Office of the Comptroller of the Currency (OCC) detailing the need to help
Minority deposit-taking institutions (MDI).

“For generations, the financial system has denied communities of color equal access to credit and banking services that allow families to build wealth and seize opportunities,” lawmakers wrote. “MDIs are an essential counterweight to these long-standing inequalities. MDIs have a larger footprint and make more loans in minority and low- and moderate-income communities, helping to make financial services accessible to all Americans, regardless of income, race, gender or background. geography.

Lawmakers cited the FDIC’s auction of its Almerica Bank shares, which they said could potentially end the financial institution‘s minority ownership status while reducing the number of black-owned banks.

“We need more MDI and black-owned banks, not less, and we applaud the recent steps in Columbus, Ohio, to create Adelphi Bank, which would be the only black-run bank in the world. ‘Ohio and twenty-first nationwide,’ lawmakers concluded. “Adelphi will address the unmet needs of minority and low-income consumers in Columbus, and we hope similar efforts lead to new MDIs elsewhere in Ohio and across the country. “

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