OCC announces effort to support minority-owned banks

WASHINGTON — The Office of the Comptroller of the Currency announced a new effort Thursday to encourage national banks to develop partnerships with minority-owned banks.

The Project REACh Pledge to Strengthen Minority Depository Institutions initiative is meant to help MDIs "remain a vibrant part of the economic landscape and better promote fair, equal, and full access to financial products and services in their communities,” the OCC said in a press release.

The partnerships are the latest offshoot of Project REACh, an effort developed by the OCC over the summer to bring together bankers, community leaders and civil rights organizers in an attempt to expand access to credit in the U.S.

Supporting MDIs — a legal term regulators define as a bank with at least 51% of its voting stock owned by people of color — has emerged as a significant policy issue in recent years as their numbers have dwindled, particularly among Black-owned banks.

“MDIs are critical pieces of their communities and enjoy trust and relevance other institutions do not,” acting Comptroller Brian Brooks said in the press release. “Their unique status makes them well-suited to help improve financial services for minority and underserved communities and create meaningful economic opportunities.”

Bankers who participate in the initiative will sign a pledge to “engage in open discussion with MDI senior leaders to identify areas" where institutions can lend support.

A small group of banks has already signed the pledge, according to the press release. They include Citigroup, Wells Fargo, Flagstar Bancorp, Huntington Bancshares and Texas Capital.