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BOARD OF GOVERNORS

OF THE

FEDERAL RESERVE SYSTEM

WASHINGTON, D.C. 20551 

DIVISION OF 

SUPERVISION AND REGULATION

DIVISION OF CONSUMER AND 

COMMUNITY AFFAIRS

SR 21-6 

CA 21-4 

March 5, 2021 

Revised March 25, 2021

 

In March 2021, this letter was revised to clarify that the Federal Reserve System separately defines 

minority depository institutions and women’s depository institutions and that all such entities are 

eligible to access resources under the Federal Reserve System’s Partnership for Progress program.

TO THE OFFICER IN CHARGE OF SUPERVISION

AT EACH FEDERAL RESERVE BANK 

 

SUBJECT: Highlighting the Federal Reserve System’s Partnership for Progress Program for 

Minority Depository Institutions and Women’s Depository Institutions

Applicability: This letter only applies to minority depository institutions and women’s depository 

institutions (each as defined in this letter) that are subject to Federal Reserve System supervision. 

This letter outlines for Federal Reserve System (System) staff, minority depository institutions 

(MDIs), and women’s depository institutions (WDIs) the System’s Partnership for Progress (PFP) 

program and the PFP program resources that are available to MDIs and that are being made available to 

WDIs. 

The System supports an inclusive financial system and understands the challenges inherent in 

providing access to credit and other financial services in traditionally underserved areas. The System

remains strongly committed to identifying and carrying through on all opportunities to support MDIs, 

consistent with its statutory mandate.1

 In addition, the System is strongly committed to supporting 

opportunities for WDIs.

I. Overview and Organizational Structure of the PFP Program 

The PFP program is the System’s national MDI and WDI outreach program and implements the 

System’s efforts to support these institutions. Established in 2008, it was created in recognition of the 

importance of, and works to preserve and promote, MDIs. The System also recognizes the importance of 

1 Section 308 of the Financial Institutions Reform, Recovery, and Enforcement Act, as amended in 2010 by section 

367 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, requires that the Federal Reserve Board, 

the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency preserve and promote 

MDIs and report annually to Congress on their programs.
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WDIs, and the PFP program’s mission is to provide MDIs and WDIs with resources to assist them with

operating in a safe-and-sound manner, adhering to laws that protect consumers, and meeting Federal 

Reserve Board (Board) supervisory standards.

The Board’s Division of Supervision and Regulation (S&R) and Division of Consumer and 

Community Affairs (DCCA) maintain an Executive Oversight Committee and Working Group that 

oversee and direct the PFP program. A representative from each of S&R and DCCA serves as a National 

Co-Coordinator of the PFP program.

Each Reserve Bank designates a District Coordinator to oversee the PFP program within its 

district. District Coordinators operate under the oversight and management of the PFP Program Manager, 

which is located at the Federal Reserve Bank of Philadelphia. The Board’s PFP Working Group works 

with the Program Manager and the District Coordinators to conduct outreach activities for MDIs and 

WDIs at the district level. Further, District Coordinators coordinate with the designated central point of 

contact or the examiner-in-charge of each such institution at the applicable Reserve Bank to facilitate 

discussions with these institutions to determine their needs, understand their mission and goals, and seek 

any recommendations for potential enhancements to the PFP program. District Coordinators also work 

with the examiner-in-charge to be informed of and help with the scoping and planning of examinations of 

these institutions. 

The Board’s PFP Working Group seeks to achieve the program’s goals outlined above through: 

1. Holding periodic meetings with the Board’s PFP Executive Oversight Committee, Program 

Manager, and District Coordinators, to coordinate MDI and WDI outreach efforts; 

2. Offering training and outreach sessions to these institutions through Ask the Fed® and districtinitiated training programs;

3. Providing targeted information to these institutions on the System’s supervisory and applications 

processes and making research available through the PFP website; and

4. Producing research, convening stakeholders, and promoting these institutions through speeches 

and other publications.

The PFP Working Group fulfills the Financial Institutions Reform, Recovery, and Enforcement 

Act (FIRREA) requirements and oversight responsibilities to preserve and promote MDIs primarily 

through the PFP program.

II. Defining “Minority Status” and “MDI” 

FIRREA defines the term “minority” to mean any Black American, Native American, Hispanic 

American, or Asian American. 

The System’s definition of MDI is consistent with the FIRREA definition of “minority bank,” 

and states that an MDI is any depository institution (either privately or publicly owned) where 51 percent 

or more of the voting stock is owned by one or more socially and economically disadvantaged individuals

(ownership test), and in the case of a mutual institution where the majority of the board of directors

consists of minority individuals, the majority of the account holders consists of minority individuals, and 

the community which it services is predominantly minority.2,3

 

2 12 USC § 1823(f)(12).

3 For the purposes of the System’s definition of MDI, a U.S. subsidiary of a foreign-owned bank does not qualify as

an MDI.
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In addition to institutions that meet the FIRREA qualifying criteria, the System considers an 

institution to be an MDI if a majority of its board of directors consists of minority individuals and the 

community that the institution serves is predominantly minority.

III. Defining “WDI” 

The System’s definition of “women’s depository institution” is consistent with the statutory 

definition of this term in the Community Reinvestment Act, and includes any depository institution in 

which (A) more than 50 percent of the ownership or control of which is held by 1 or more women; (B) 

more than 50 percent of the net profit or loss of which accrues to 1 or more women; and (C) a significant 

percentage of senior management positions of which are held by women.4

IV. Background on Statutory Mandates 

FIRREA, as amended by the Dodd-Frank Wall Street Reform and Consumer Protection Act, 

requires the Federal Reserve to consult with the Office of the Comptroller of the Currency (OCC) and the 

Federal Deposit Insurance Corporation (FDIC) on the best methods for achieving the following goals: 

1. Preserving the number MDIs; 

2. Preserving their minority character in cases involving mergers or acquisition of an MDI by using 

certain general preference guidelines; 

3. Providing technical assistance to prevent insolvency of currently solvent MDIs; 

4. Providing training, technical assistance, and educational programs; and 

5. Promoting and encouraging the creation of new MDIs. 

V. MDI and WDI Designation Process

The Board coordinates with the OCC and FDIC to maintain a list of all designated MDIs, which 

is published on the FDIC’s website.

5

 Further, PFP staff will develop, publish, and maintain on the PFP 

website a list of all System-designated WDIs.6

 To ensure that all MDIs and WDIs are able to participate 

in the PFP program, the Board accepts requests for designations at any time. An eligible institution not 

already designated can request to be designated by contacting its Reserve Bank and certifying that it

meets the relevant definition. District Coordinators share this information with the Board, which makes 

the final determination on MDI and WDI designation and inclusion in the PFP program. Inclusion in the 

PFP program is voluntary. Any designated institution that no longer wishes to participate in the PFP

program will be removed from the relevant official list upon written request to its District Coordinator or

the Board. A depository institution that meets the System’s definition of both MDI and WDI may elect to 

be on either, both, or none of the official lists. 

VI. Engagement with MDIs and WDIs

At the direction of the Board’s PFP Working Group, System PFP staff will conduct outreach and 

provide technical assistance, training, education, and gatherings for MDIs and WDIs. Examples of these 

activities include:

1) Outreach

4 12 USC § 1209(b)(2).

5 The list of MDIs can be found here: https://www.fdic.gov/regulations/resources/minority/mdi.html. 6 The PFP program website can be found at: https://www.fedpartnership.gov.
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PFP staff will periodically meet with these institutions to provide general program information and 

resources to assist them with challenges or needs, and to determine any specific need. This may 

include educating them about new academic research related to their market sector. PFP staff may 

also connect them with other interested parties to discuss mutually beneficial partnerships. For 

example, PFP staff may bring these institutions together with banks that have an incentive to invest in 

them under the Community Reinvestment Act. Similarly, PFP staff may connect them with entities 

that have expressed an interest in investing in minority-owned or women-owned banks.

2) Technical Assistance: General and Examination Follow-up

a) General

PFP staff will provide ongoing technical assistance to these institutions, including with respect to

bank or bank holding company regulations, System policies, examination procedures, or other 

challenges that they might be facing. Upon request for technical assistance by an institution, 

District Coordinators will arrange for System subject matter experts to advise on riskmanagement procedures, accounting practices, recruiting techniques, and any other requests for 

technical assistance. Such System subject matter experts will not perform tasks that are the 

responsibility of these institutions. For example, System staff subject matter experts may explain 

Call Report instructions as they relate to specific accounts, but will not assist in the preparation of 

an institution's Call Report. As another example, System subject matter experts may provide 

information to the institution on community reinvestment opportunities, but will not recommend 

any specific transaction. The applicable Reserve Bank and institution will document and specify 

the work and assistance to be provided by System subject matter experts.

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b) Examination Follow-up

In coordination with their District Coordinator, examiners are expected to follow-up with their 

MDIs and WDIs post-examination to explain any supervisory recommendations and, when 

requested, support the management of these institutions in addressing such recommendations. 

Examiners will also assess the quality of information flow during the examination and enhance 

such management’s understanding of supervisory policies, examination findings, and 

examination recommendations. Follow-up activities are not designed to identify new problems. 

Post-examination follow-up activities offered to an institution should reflect a proactive approach 

through either a letter, a phone call, or on-site assistance. The level of post-examination 

assistance should be commensurate with the issues facing the institution; institutions with a 

higher level of examination recommendations would generally be offered a higher level of 

technical assistance in implementing those recommendations. 

c) Applications Processes and De Novo Inquiries

District Coordinators will support these institutions in the applications process and the type of 

analysis and information required for different types of applications. The Program Manager and 

the District Coordinators will provide support regarding the process for proposed de novo

formations or mergers and acquisitions involving these institutions, and will work with trade 

associations and other organizations to attempt to identify and/or assist groups that may be 

interested in establishing new MDIs or WDIs. PFP staff will engage with such organizations to 

discuss: i) the applications process; ii) structure and charter options; iii) requirements for 

7 The Board PFP Working Group can assist with outreach agreements and language development. 
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obtaining FDIC insurance; and iv) the various programs geared toward fostering these

institutions. 

3) Training, Education, and Gatherings 

PFP staff will work with these institutions, trade associations representing them, prospective 

investors, and the OCC and FDIC to periodically assess the need for, and provide, training 

opportunities, collaborative outreach, and educational opportunities. PFP staff will collaborate with 

the trade associations and other regulators to offer training programs during their annual conferences 

and other regional meetings.

VII. Failing Institutions 

PFP staff will work with System applications staff and consult with the OCC and FDIC to 

explore strategies to facilitate the applications process for MDIs and WDIs in the event of an impending 

failure of an institution. PFP staff, consulting with the FDIC, will attempt to preserve the character of any 

failing institution with these designations during the resolution process. 

VIII. Distribution and Contacts 

Reserve Banks are asked to distribute this letter to the District Coordinators in their district and to 

safety-and-soundness, consumer examination, and community development staff. Questions regarding 

this letter should be submitted via the Board’s public website.8

 

 

Michael S. Gibson Eric Belsky

Director Director

Division of Supervision and 

Regulation

Division of Consumer and 

Community Affairs

Supersedes:

• SR 13-15 / CA 13-11, “Federal Reserve Resources for Minority Depository Institutions”

8 See http://www.federalreserve.gov/apps/contactus/feedback.aspx.