The FDIC is setting up a Mission-Driven Bank Fund to help support minority depository institutions and community development financial institutions, FDIC Chairman Jelena McWilliams said today. The fund “will channel investors’ funds to make investments in MDIs and CDFIs, through a variety of asset classes,” McWilliams told attendees at an industry event today.
“One of our objectives in setting up the Mission-Driven Bank Fund was to create the opportunity for MDIs and CDFIs to make pitches for funding tailored to their business models, strategic plans, and vision for building the future,” she said. “We also are incorporating a feature for the fund manager to make available advisory services including strategic, financial, operations, and technology consulting support to complement the capital investments provided by the fund.”
Mc Williams added that “our goal is for the anchor investors to hire a fund manager in the second quarter, conduct a fundraising round, and be prepared for the fund to accept pitches from MDIs and CDFIs in the third quarter.” While the FDIC is helping to design the fund, she noted that the agency will not manage the fund, contribute capital to the fund or be involved in investment decisions.