The Federal Deposit Insurance Corp. is spearheading an effort to match private investors with minority-owned banks and community development financial institutions that need capital.
The agency on Thursday announced the launch of the Mission-Driven Bank Fund. Truist Financial and Microsoft will lead the new fund as anchor investors, and a contribution from Discovery Inc. pushed the initial funding to $ 120 million. The FDIC expects additional commitments.
The 280 certified minority deposit institutions and CDFIs will be eligible to seek investments, pitching their ideas to fund managers on how they would use the funds, the FDIC said.
“We would love to see other companies and philanthropic institutions also invest,” FDIC Chair Jelena McWilliams said on a conference call with reporters. “I won’t say we’re going on a road show, but we’re certainly going to be promoting the fund in hopes it attracts additional investors and the overall amount pledged to the fund increases exponentially.”
The FDIC organized the fund and will act in an advisory role, but the agency “will not make funding decisions or investment decisions,” McWilliams said.
“I won’t say we’re going on a road show, but we’re certainly going to be promoting the fund in hopes it attracts additional investors and the overall amount pledged to the fund increases exponentially,” said FDIC Chair Jelena McWilliams.
“Because of our role as a bank regulatory and supervisor it will be managed by a private-sector fund manager on behalf of the investors,” she added.