Fed clarifies MDI definition guidance
On March 5, the Federal Reserve Board issued clarifying guidance regarding definitions for minority depository institutions (MDIs), expanding the definition of an MDI to include women-owned financial institutions. In addition to statutory provisions—which define the term “minority” to mean any African American, Native American, Hispanic American, or Asian American, and “states that an MDI is any depository institution where a majority of the voting stock is owned by one or more socially and economically disadvantaged individuals”—the Federal Reserve System’s definition of an MDI will now recognize women’s depository institutions, and will provide these depository institutions with the same resources as other MDIs. According to the Board, the definition of a “women’s depository institution” is consistent with how the term is defined under the Community Reinvestment Act. Additionally, the Board highlighted resources available for MDIs through its Partnership for Progress program, which helps MDIs operate in a safe and sound manner and meet supervisory standards.