OCC Revises Minority Depository Institution Policy
National banks, Federal savings associations and mutual savings associations designated as MDIs are subject to the revised definition effective June 16, 2026.
The Office of the Comptroller of the Currency issued a revised policy statement on minority depository institutions (MDIs) on June 16, 2026 (FR Doc 2026-12364). The update aligns the agency's definition with the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) and removes language vulnerable to obsolescence while preserving the MDI designations of banks that held them immediately before the issuance.
Under the revised definition, a national bank or Federal stock savings association qualifies as an MDI only if at least 51 percent is owned by one or more socially and economically disadvantaged individuals. A Federal mutual savings association qualifies when the majority of its board of directors, account holders, and the community it serves are predominantly minority, defined as Black, Native American, Hispanic, or Asian American. The statement also clarifies that an MDI may not be a U.S. subsidiary of a foreign-owned bank.
The policy outlines a two-step process for de novo banks: obtain a charter from the OCC's Chartering, Organization & Structure team and then request MDI designation. Existing banks may also request designation, and any bank that held an MDI designation the day before the policy's issuance may retain that status unless a material change in facts triggers a reassessment. The OCC conducts an annual review to confirm continued compliance with the definition.
Investments count toward the 51-percent ownership threshold only when the investor is a socially and economically disadvantaged individual, or when a corporation, partnership, or other entity is itself an MDI or is at least 51 percent owned by such individuals. For example, a private-equity fund's investment would be attributed only if the fund meets the same ownership criteria.
The Treasury Secretary will continue to consult with the OCC on methods to achieve FIRREA's goals, and the OCC is required to submit an annual report to Congress on its actions under the statute.