18 DIVERSITY AND INCLUSION

ANNUAL 

REPORT

 

DIVERSITY AND INCLUSION 

The FDIC has long been committed to the principles of 

diversity, equity, and inclusion — in our workplace, our 

interactions with contractors and other third parties, and 

at the financial institutions we supervise. 

The Ofice of Minority and Women Inclusion (OMWI) 

supports this commitment by ensuring equal 

employment opportunity and evaluating and addressing 

issues related to the racial, ethnic, and gender diversity 

of the FDIC workforce and senior management of the 

agency. OMWI, through its outreach eforts, works to 

ensure the fair inclusion and utilization of minorityand women-owned businesses (MWOBs), law firms 

(MWOLFs), and investors in contracting and investment 

opportunities. OMWI is also responsible for assessing 

the diversity policies and practices of FDIC-regulated 

financial institutions. 

WORKFORCE DIVERSITY 

AND WORKPLACE 

INCLUSION AT THE FDIC 

The FDIC Diversity and Inclusion (D&I) Strategic Plan 

delineates strategies to promote workforce and 

workplace inclusion and sustainability of diversity and 

inclusion eforts. The D&I Executive Advisory Council 

oversees the plan’s implementation and promotes the 

coordination and awareness of diversity and inclusion 

initiatives as an FDIC priority. Additionally, employees 

provide input on these eforts by serving on the regional 

and headquarters Chairman’s Diversity Advisory Councils 

or joining one of the nine Employee Resource Groups. 

The plan is evaluated regularly to assess its efectiveness 

and to measure our success against stated goals, and 

is updated regularly to ensure that it reflects current 

operations and challenges. 

In 2020, Chairman McWilliams announced several new 

initiatives to increase diversity in the FDIC workforce and 

leadership, create a culture of excellence that supports 

and sustains high performance, educate all employees 

on the importance of D&I, and identify and eliminate 

barriers to successfully meeting strategic objectives. 

As a result of past and current eforts, the racial, 

ethnic, and gender diversity of the FDIC workforce has 

improved–but we know that there is much room for 

improvement. At the end of 2020, minorities represented 

32 percent of the permanent workforce and women 

accounted for 44 percent.  The FDIC has also increased 

diversity across leadership: minorities hold 23 percent 

of the management-level positions at the FDIC, and 

women hold 40 percent (up from almost 16 percent and 

30 percent, respectively, since the enactment of Section 

342 of the Dodd-Frank Wall Street Reform and Consumer 

Protection Act (Dodd-Frank Act)). Notwithstanding this 

progress to close longstanding gaps, more needs to be 

done, and the FDIC is fully committed to doing what it 

takes to succeed. 

With the potential for increased retirements and hiring 

activity over the next few years, the FDIC is now well 

positioned to continue the diversity transformation 

of the workforce. Improved recruiting and retention 

eforts have already produced results, and new initiatives 

in these areas will further strengthen diversity and 

inclusion. 

MINORITY- AND WOMENOWNED BUSINESS OUTREACH 

Due to COVID-19, many of the events the FDIC typically 

attends to engage with minority- and women-owned 

businesses were cancelled or postponed. Instead, 

the FDIC participated in virtual procurement outreach 

events, attended webinars and hosted outreach to 

minority- and women-owned businesses. The FDIC also 

targeted diverse publications to market its own virtual 

procurement events and utilized social media platforms, 

as well as the FDIC website to improve awareness of the 

agency’s procurement process and initiatives. 

The FDIC participated in one business expo, six oneon-one matchmaking sessions, and three panel 

presentations. FDIC panelists also participated in 

various procurement events, including the National 

8(a) Conference, National Small Business Federal 

Contracting Summit, and the U.S. Women’s Chamber of 

Commerce Summit. At these events, FDIC staf provided 

information and responded to inquiries about the FDIC’s 

business opportunities for minorities and women. 
DIVERSITY AND INCLUSION 19 

2020

 

The FDIC also hosted two free virtual events: the 

inaugural Pitch Day and the Getting to Success: Marketing 

Your Business Technical Assistance Event. The Pitch 

Day event allowed MWOBs to market their business 

capabilities to the FDIC that meet potential agency 

requirements. In addition, OMWI hosted the virtual 

Getting to Success: Marketing Your Business Technical 

Assistance Event, which highlighted marketing best 

practices, discussed digital and traditional marketing, 

and provided a checklist tool for participants to evaluate 

current messaging and marketing strategies. 

In 2020, the FDIC awarded 117 (29 percent) contracts to 

MWOBs out of a total of 409 issued. The FDIC awarded 

contracts with a combined value of $426.7 million in 

2020, of which 21 percent ($90 million) was awarded to 

MWOBs. By comparison, in 2019, 152 of 518 contracts (29 

percent) and $173.5 million of $554.0 million (31 percent) 

was awarded to MWOBs. In 2020, the FDIC paid $106.5 

million of its total contract payments (22 percent) to 

MWOBs, under 250 MWOB contracts. 

MINORITY- AND WOMENOWNED LAW FIRM OUTREACH 

The FDIC paid $397,000 in legal fees to MWOLFs and 

paid $3.61 million to diverse attorneys in 2020. Taken 

together, the FDIC paid $4.0 million to MWOLFs and 

diverse attorneys out of a total of $18.34 million spent 

on outside counsel services, for an aggregate 22 percent 

diversity and inclusion participation rate in outside 

legal contracting in 2020. The FDIC made 17 referrals 

to MWOLFs, which accounted for 26 percent of all 

legal referrals. Total payments to MWOLFs were 

$397,000 in 2020, which is 2 percent of all payments 

to outside counsel. 

In 2020, the FDIC Legal Division participated in two 

minority bar association conferences and three 

stakeholder events, two of which were virtual events. In 

order to ofset the impact of the canceled events, the 

Legal Division created a legal contracting advertising 

campaign to advertise the Legal Division’s supplier 

diversity program in a well-regarded group of diversityrelated publications. In addition, the Legal Division 

organized several virtual meetings with current MWOLFs 

on the FDIC List of Counsel Available in order to maintain 

relationships with firms that are currently working with 

the Corporation. The Legal Division also participated 

in virtual projects to strengthen the pipeline of diverse 

attorneys entering the legal profession in connection 

with a historically black college or university law school. 

The Legal Division interviewed and recruited 15 MWOLFs 

in the event of an increase in bank resolution activities. 

FDIC in-house attorneys participated in a virtual 

stakeholder event to build relationships with MWOLFs. 

In addition, the Legal Division conducted compliance 

reviews to assess the diversity policies and practices of 

the 10 top-billing law firms (both non-minority-owned 

and MWOLFs) pursuant to Section 342(b)(2)(C) of the 

Dodd-Frank Act. 

FINANCIAL INSTITUTION 

DIVERSITY 

Financial Institution Diversity (FID) is a program for 

assessing the diversity policies and practices of FDIC 

regulated financial institutions. Financial institutions 

are encouraged to conduct a self-assessment annually, 

and share results with OMWI. In 2020, the FDIC released 

an automated Form 2710/05, Diversity Self-Assessment 

of FDIC Regulated Financial Institutions, via the new 

Financial Institution Diversity Self-Assessment (FID-SA) 

application that is accessible through the FDICconnect 

portal. FID-SA was designed to make the completion 

of the assessment more user-friendly for financial 

institutions and more secure. 

The FDIC received 152 self-assessments from 787 

regulated institutions having 100 or more employees for 

the 2019 reporting period, representing 19.3 percent of 

all regulated institutions and a 60 percent increase in 

participation over the first 2016 reporting period. 

Analysis of the self-assessment data allows OMWI to 

identify exemplary practices that financial institutions 

have implemented as part of their workforce 

recruitment, supplier diversity procurement, and 

training practices. 
20 DIVERSITY AND INCLUSION

ANNUAL 

REPORT

 

Despite the challenges presented by the pandemic, 

OMWI successfully completed the following outreach 

initiatives in 2020: 

♦ Created a dedicated resources page and prepared 

material to help financial institutions develop or 

strengthen their diversity and inclusion practices 

and policies; 

♦ Presented the FID Program to the FDIC’s Advisory 

Committee on Community Banks and to the FDIC’s 

Advisory Committee on Economic Inclusion; and 

♦ Participated in the American Bankers Association’s 

(ABA’s) Unconventional Convention, and Diversity, 

Equity, and Inclusion Summit. 

Through these outreach eforts, the FDIC reinforces the 

value of conducting voluntary self-assessments and 

making diversity information transparent to the public. 

More Information about the FDIC’s eforts related to 

diversity and inclusion is located at www.fdic.gov/about/ 

diversity. 

MINORITY DEPOSITORY 

INSTITUTIONS ACTIVITIES 

The preservation and promotion of MDIs remains a 

long-standing, top priority for the FDIC. The FDIC’s 

research study, Minority Depository Institutions: Structure, 

Performance, and Social Impact, published in 2019, found 

that MDIs have played a vital role in providing mortgage 

credit, small business lending, and other banking 

services to minority and low- and moderate-income 

communities. 

In 2020, the FDIC pursued several strategies to 

support MDIs including increasing engagement and 

representation, facilitating partnerships, updating 

policies, and promoting the MDI sector through 

advocacy, as well as by providing outreach, technical 

assistance, and education and training for MDIs. 

Engagement and Representation 

The FDIC’s MDI Subcommittee of the Advisory 

Committee on Community Banking (CBAC), was 

formed in 2019 and held two virtual meetings in 

2020. The MDI Subcommittee, comprised of nine MDI 

executives representing all types of MDIs, provides a 

venue for minority bankers to discuss key issues and 

share feedback on program initiatives, including the 

FDIC’s revised Statement of Policy Regarding Minority 

Depository Institutions. The MDI Subcommittee also 

provides a platform to showcase MDI best practices. 

In addition, three MDIs serve on the 18-member CBAC to 

further bring MDI perspectives and issues to the table. 

Partnerships 

In 2019, the FDIC facilitated a number of networking 

roundtables to bring together MDIs and large banks, and 

these networking opportunities continued to bear fruit 

in 2020 with more than $10 million in additional deposits 

into MDIs. 

In October 2020 the FDIC published a resource guide, 

Investing in the Future of Mission-Driven Banks: A Guide 

to Facilitating New Partnerships, as well as an MDI and 

CDFI Bank Locator to help private investors develop 

partnerships with MDIs and other mission-driven 

banks. The resource guide outlines the important 

role FDIC-insured MDIs and CDFIs play in the financial 

system, describes the business needs of these banks, 

and outlines strategies for private companies and 

philanthropic organizations to consider in supporting 

MDIs and CDFIs through equity investments, grants, 

deposits, creation of an investment fund, technology 

support, and other partnership opportunities. These 

strategies can help MDIs build capacity and scale. 

In December 2020, 

the FDIC reviewed 

proposals to engage 

a financial services 

advisory firm to 

work with law firms 

retained by the FDIC 

to begin standing up 

the Mission-Driven 

Bank Fund, which 

will channel private 

investment funds into 

FDIC-insured missiondriven banks such 

as MDIs and CDFIs. 

The fund will provide 

opportunities for 

FDIC-insured missionThe FDIC issued a resource guide in 

October 2020 to help private investors 

develop partnerships with MDIs and 

other mission-driven banks. 
DIVERSITY AND INCLUSION 21 

2020

 

driven banks to pitch proposals for equity capital, loan 

participations, and other ways to build capacity and 

scale. With significant investment commitments by 

private companies, philanthropic organizations, and 

other financial institutions, it is anticipated that the fund 

will provide a sizeable source of capital and other helpful 

tools that can help MDIs and CDFIs grow their operations 

and expand their impact in minority communities. 

The FDIC intends to launch the fund in 2021. The 

FDIC will not be an investor or play a role in hiring the 

independent fund manager or investment committee. 

Policies 

The FDIC’s Board of Directors updated and strengthened 

its Statement of Policy Regarding Minority Depository 

Institutions in August and published it for public noticeand-comment in September 2020. The policy statement 

reflects the agency’s enduring commitment to fulfilling 

the five statutory goals to preserve and promote 

MDIs and outlines the framework for the MDI program 

across the FDIC. Key changes include emphasis on 

engagement with MDIs, enhanced technical assistance, 

and a description of how examiners apply examination 

standards to the unique business models of MDIs. The 

public comment period closed in November 2020, and 

afer reviewing and considering the comments, the FDIC 

will issue the final Statement of Policy in 2021. 

Advocacy 

It is important to promote the visibility of MDIs, to tell 

their stories, and showcase the important role they play 

in their communities. In early 2020, the FDIC began 

recording and publishing videos of MDI executives 

sharing their institutions’ “origin stories,” highlighting the 

reasons their institutions were formed, and describing 

how they have served their communities over time. In 

addition, the FDIC recorded and promoted a number 

of videos and podcasts centered on MDIs, and agency 

leaders emphasized the significance of MDIs in numerous 

public speaking engagements. 

Outreach, Technical Assistance, Education 

The FDIC also continuously pursued eforts to improve 

communication and interaction with MDIs and to 

respond to the concerns of minority bankers in 2020. 

The agency maintains active outreach with MDI 

trade groups and ofers to arrange annual meetings 

between FDIC regional management and each MDI’s 

board of directors to discuss issues of interest. The 

FDIC routinely contacts MDIs to ofer return visits 

and technical assistance following the conclusion of 

FDIC safety and soundness, consumer compliance, 

Community Reinvestment Act (CRA), and other 

specialty examinations to help bank management 

better understand and implement examination 

FDIC Chairman Jelena McWilliams (center) participates in the Freedman’s Bank Forum, an event held at the U.S. Treasury on March 3, 2020, to 

commemorate the 155th anniversary of the bank’s founding. From lef, NCUA Chairman Rodney Hood, Treasury Assistant Secretary Bimal Patel, 

Comptroller of the Currency Joseph M. Otting, and Federal Reserve Governor Michelle W. Bowman. 
22 DIVERSITY AND INCLUSION

ANNUAL 

REPORT

recommendations. These return visits, normally 

conducted within 90 to 120 days afer the examination, 

are intended to provide useful recommendations or 

feedback for improving operations, not to identify new 

issues. 

Through its public website (www.fdic.gov), the FDIC 

invites inquiries and provides contact information for any 

MDI to request technical assistance at any time. 

In 2020, the FDIC provided 135 individual technical 

assistance sessions on approximately 40 risk 

management, consumer compliance, and resolution 

topics, including: 

♦ Accounting, 

♦ Bank Secrecy Act (BSA) and Anti-Money 

Laundering (AML), 

♦ Business continuity planning, 

♦ Community Reinvestment Act, 

♦ Compliance management, 

♦ Funding and liquidity, 

♦ Information technology risk management and 

cybersecurity, 

♦ Internal audit, 

♦ Loan modifications and Troubled Debt 

Restructuring, and 

♦ Pandemic contingency planning. 

The FDIC also held outreach, training, and educational 

programs for MDIs through conference calls and regional 

banker roundtables. In 2020, topics of discussion for 

these sessions included many of those listed above, as 

well as collaboration and partnerships, CECL accounting 

methodology, IT vendor management, cybersecurity, 

CRA, innovation, BSA, CDFI Fund Programs, and 

emerging technology.