WASHINGTON–The FDIC said it is seeking experienced financial advising firms to help it develop a structure and “operational aspect” for a new “Mission-Driven Bank Fund” it is establishing to assist minority depository and community development financial institutions.
The FDIC said the new fund will “provide a vehicle for private sector and philanthropic investment in FDIC-insured Minority Depository Institutions (MDIs) and Community Development Financial Institutions (CDFIs).”
According to the agency, one or more financial-advisor firms selected through a competition to counsel the fund’s investing, must have experience managing investment funds as well as experience with MDIs and CDFIs and a “deep understanding of the communities they serve.”
The FDIC said “mission-driven banks” are those MDIs and CDFIs that commit a larger portion of their portfolios to minority, lower-income, and rural communities.
The Objectives
The investments in the Mission-Driven Bank Fund will assist MDIs and CDFIs to (among other things) raise capital necessary to serve communities, weather economic downturns, attract technical expertise; and acquire and use technology, the FDIC said.
The agency said investments made in the institutions by the fund may include direct equity, structured transactions, funding commitments, and loss-share arrangements.
The FDIC added it will not play a role in fund management or individual investment decisions of the fund, but it will continue to “assess the alignment of the Fund’s ongoing operations with its purpose of assisting Mission-Driven Banks.”