OCC Provides Minority Institutions Flexibility to Raise Capital

OCC Capital Requirements

On June 11, the OCC revised its policy statement on minority institutions to make it easier for those institutions to raise capital. The OCC acknowledged that minority institutions may be unable to accept equity investment capital from some investors because their status as a minority institution would be jeopardized if the share of minority ownership fell below 50 percent. In response, the revised statement adds discretionary language that allows the agency to continue to treat an existing minority institution as such even if it no longer meets the 51 percent ownership criteria provided that the institution (i) primarily serves the credit and economic needs of the community in which it is chartered and (ii) that community is predominantly minority.