Minority-Owned Banks Get $120 Million Boost From Federal Insurer

The Federal Deposit Insurance Corporation (FDIC) pledged $120 million to support minority-owned banks that serve communities with few other banking options.

The financial corporation launched the Mission-Driven Bank Fund Thursday, which is slated to drive capital investment and other types of funding to FDIC-insured minority depository institutions (MDIs) and community development financial institutions (CDFIs) that support low- and moderate-income, minority, and rural communities.

The pandemic widened the wealth gap between Black and White communities and drove unemployment in the Black community. Minority-backed banks have said additional equity investment is needed to provide loans to revitalize those underserved communities.

FDIC collaborated ...